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Study sets matching "risk chapter 1"

48 terms
Risk Chapter 1
Risk
Risk
Uncertainty
Loss Exposure
Uncertainty concerning the occurrence of a loss
The property or life that is being considered for insurance
Applies to situations where the probabilities of possible out…
Any situation in which a loss is possible, regardless of whet…
Risk
Uncertainty concerning the occurrence of a loss
Risk
The property or life that is being considered for insurance
Chapter 1 Intro to Risk Management
Risk
Risk Management
Pure Risk
Speculative Risk
Uncertainty as to loss
the process used to systematically manage risk exposures
A risk that exists when there is uncertainty as to whether a…
A risk that exists when there exists uncertainty about an eve…
Risk
Uncertainty as to loss
Risk Management
the process used to systematically manage risk exposures
17 terms
Intro to Risk Mgmt Chapter 1
Pure Risk
Risk certainty
Probability of loss
Speculative Risk
Loss or no loss... -Random events (examples)-flood,fire,theft,si…
If you know a loss will happen for certain, their is no risk…
•chance/likelihood of a loss
Chance of loss, gain or no loss or gain... ex: gambling, investm…
Pure Risk
Loss or no loss... -Random events (examples)-flood,fire,theft,si…
Risk certainty
If you know a loss will happen for certain, their is no risk…
20 terms
Risk: Chapter 1
Risk?
When to use the term risk, when to use…
Loss exposure?
Two broad types of risk?
Defined as uncertainty concerning the occurrence of a loss.
-Risk is used when the probability of a possible outcome CAN…
Any situation in which a loss is possible, regardless of if t…
1. Objective risk... 2. Subjective risk
Risk?
Defined as uncertainty concerning the occurrence of a loss.
When to use the term risk, when to use…
-Risk is used when the probability of a possible outcome CAN…
41 terms
Risk & Insurance Chapter 1
risk
loss exposure
objective risk
law of large numbers
an uncertainty concerning the occurrence of a loss
any situation or circumstance in which a loss is possible, re…
the relative variation of actual loss from expected loss; dec…
states that as the number of exposure units increases, the mo…
risk
an uncertainty concerning the occurrence of a loss
loss exposure
any situation or circumstance in which a loss is possible, re…
54 terms
Chapter 1~Risk and its management
indirect losses
Driving at lower speeds in order to re…
Which one of the following method is a…
Examples of pure risk
lost profits from the interruption of the business
loss control
reduced level of risk activity
-injury to workers... -damage to assets... -legal liability... -higher…
indirect losses
lost profits from the interruption of the business
Driving at lower speeds in order to re…
loss control
31 terms
Chapter 1 risk management
risk
loss exposure
Objective Probability
Subjective Probability
uncertainty concerning the occurrence of a loss
any situation or circumstance in which a loss is possible, re…
refers to the long-run relative frequency of an event based o…
is the individual's personal estimate of the chance of loss... (…
risk
uncertainty concerning the occurrence of a loss
loss exposure
any situation or circumstance in which a loss is possible, re…
36 terms
Risk Chapter 1
Risk-reward tradeoff
Risk management helps to...
Risk
The focus of Tradition Risk Management…
when there is more risk, typically there is a higher reward;…
avoid/prevent/manage negative outcomes of risk
uncertainty surrounding/about outcomes uncertainty about a lo…
pure risk
Risk-reward tradeoff
when there is more risk, typically there is a higher reward;…
Risk management helps to...
avoid/prevent/manage negative outcomes of risk
23 terms
Risk Management Chapter 1
Historic Definition of Risk
Loss Exposure
Objective Risk
Subjective Risk
The uncertainty concerning the occurrence of a loss
Any situation or circumstance in which a loss is possible, re…
Relative variation of actual loss from expected loss
uncertainty based on one's mental condition or state
Historic Definition of Risk
The uncertainty concerning the occurrence of a loss
Loss Exposure
Any situation or circumstance in which a loss is possible, re…
32 terms
Risk Chapter 1
Risk Management
Loss Exposure
Pre-Loss Objectives
Post-Loss Objectives
A process that identifies loss exposures faced by an organiza…
Any situation or circumstance in which a loss is possible, re…
Prepare for potential losses in the most economical way, redu…
Ensure survival of the firm, continue operations, stabilize e…
Risk Management
A process that identifies loss exposures faced by an organiza…
Loss Exposure
Any situation or circumstance in which a loss is possible, re…
34 terms
Risk Chapter 1
Risk-reward tradeoff
Risk management helps to...
Risk
The focus of Tradition Risk Management…
when there is more risk, typically there is a higher reward;…
avoid/prevent/manage negative outcomes of risk
uncertainty surrounding/about outcomes uncertainty about a lo…
pure risk
Risk-reward tradeoff
when there is more risk, typically there is a higher reward;…
Risk management helps to...
avoid/prevent/manage negative outcomes of risk
17 terms
risk chapter 1
definition of risk
uncertainty
degree of risk
peril
condition in which the possibility of an adverse deviation fr…
state of mind characterized by doubt, based on a lack of know…
likelihood of occurrence; law of large numbers
a cause of loss (fire, windstorm, hail, theft)
definition of risk
condition in which the possibility of an adverse deviation fr…
uncertainty
state of mind characterized by doubt, based on a lack of know…
28 terms
Risk and Insurance Chapter 1
risk
loss exposure
objective risk
subjective risk
uncertainty connecting the occurrence of a loss - one without…
any situation or circumstance in which a loss is possible, re…
the relative variation of actual loss from expected loss
uncertainty based on a person's mental condition or state of…
risk
uncertainty connecting the occurrence of a loss - one without…
loss exposure
any situation or circumstance in which a loss is possible, re…
17 terms
Chapter 1 - Risk in Society
define risk
3 steps to managing risk
subjective risk
high vs low... subjective risk
uncertainty concerning a loss.... primary danger is the ignoran…
1. identify... 2. loss control... 3. financing
individual perception
high = conservative... low = risky
define risk
uncertainty concerning a loss.... primary danger is the ignoran…
3 steps to managing risk
1. identify... 2. loss control... 3. financing
31 terms
Risk Chapter 1
Uncertainty
Losses
loss
Impossible
Regarding events which may produce a loss ... Can be losses for…
can be known with certainty
A __ that is certain has 100% chance of happening
___ loss has 0% chance of happening (pigs flying)
Uncertainty
Regarding events which may produce a loss ... Can be losses for…
Losses
can be known with certainty
75 terms
Intro to Risk Chapter 1
explain the Risk-reward trade off
what is risk
risk management helps to..
pure risk
it exists in business and it goes like this: more risk, more…
uncertainty about an outcome
avoid/prevent/reduce (mitigate) the negative outcome of risk.
the focus of TRM. uncertainty regarding a loss or event which…
explain the Risk-reward trade off
it exists in business and it goes like this: more risk, more…
what is risk
uncertainty about an outcome
23 terms
Chapter 1: Introduction to Risk
Risk
Cost of Risk
Pure Risk
Speculative Risk
Uncertainty as to economic loss.
The sum of:... 1. Outlays to reduce risks... 2. The opportunity cos…
Uncertainty as to whether a loss will occur.
The uncertainty of an event that could produce either a profi…
Risk
Uncertainty as to economic loss.
Cost of Risk
The sum of:... 1. Outlays to reduce risks... 2. The opportunity cos…
41 terms
Risk & Insurance Chapter 1
risk
loss exposure
objective risk
law of large numbers
an uncertainty concerning the occurrence of a loss
any situation or circumstance in which a loss is possible, re…
the relative variation of actual loss from expected loss; dec…
states that as the number of exposure units increases, the mo…
risk
an uncertainty concerning the occurrence of a loss
loss exposure
any situation or circumstance in which a loss is possible, re…
13 terms
Chapter 1- Insurance & Risk
Risk:
Peril:
Named Perils Insurance:
Hazard:
Possibility of an adverse deviation from a desired outcome th…
Things like flood, fires, hurricanes
Only covers the stated specific things (ex: hurricane insuran…
Increases a risk (increases odds of something happening)... -(ex…
Risk:
Possibility of an adverse deviation from a desired outcome th…
Peril:
Things like flood, fires, hurricanes
41 terms
Chapter 1 Measuring and Weighing Risk
Risk assessment deals with...
A vulnerability is a ...
Conducting Risk Assessment
ALE is the ...
... the threats, vulnerabilities, and impacts of a loss of in…
... weakness that could be exploited by a threat. ... Each iden…
1. Interview the department heads and the data owners ... 2. Ev…
... annual loss expectancy... This is a monetary measure of how…
Risk assessment deals with...
... the threats, vulnerabilities, and impacts of a loss of in…
A vulnerability is a ...
... weakness that could be exploited by a threat. ... Each iden…
31 terms
Chapter 1 Risk and Its Treatment
loss exposure
risk
chance of loss
law of large numbers
any situation or circumstance in which a loss is possible, re…
any situation where there is uncertainty about what outcome w…
the probability that an event will occur
the greater the number of exposures, the more closely will ac…
loss exposure
any situation or circumstance in which a loss is possible, re…
risk
any situation where there is uncertainty about what outcome w…
34 terms
Risk and Insurance- Chapter 1
Risk
Loss Exposure
Objective Risk
Subjective Risk
uncertainty concerning the occurrence of loss
any situation or circumstance in which a loss is possible reg…
the relative variation of actual loss from expected loss.... How…
uncertainty based on a person's mental condition or state of…
Risk
uncertainty concerning the occurrence of loss
Loss Exposure
any situation or circumstance in which a loss is possible reg…
41 terms
Chapter 1 (Risk and Its Treatment)
Risk
Loss Exposure
Examples of loss exposures
Objective Risk
Defined as uncertainty concerning the occurrence of a loss; f…
any situation or circumstance in which a loss is possible, re…
manufacturing plants that may be damaged by an earthquake or…
defined as the relative variation of actual loss from expecte…
Risk
Defined as uncertainty concerning the occurrence of a loss; f…
Loss Exposure
any situation or circumstance in which a loss is possible, re…
Chapter 1: Risk Assessment
6. General characteristics of the toxi…
14. Local and systemic toxicities. Con…
15. The order of frequency of involvem…
27. The concept of tolerance.
allergic reactions and idiosyncratic reactions
Local toxicity happens when the two sites coincide: contact a…
CNS, circulatory system, blood and hematopoietic system; live…
state of decreased response to the toxicity
6. General characteristics of the toxi…
allergic reactions and idiosyncratic reactions
14. Local and systemic toxicities. Con…
Local toxicity happens when the two sites coincide: contact a…
18 terms
Risk management chapter 1
Risk
Objective risk
Subjective risk
Chance Of loss
Uncertainty concerning the occurrence of a loss
The relative variation of actual loss from expected loss.
Uncertainty based on a person's mental condition or state of…
Probability that an event will occur
Risk
Uncertainty concerning the occurrence of a loss
Objective risk
The relative variation of actual loss from expected loss.
25 terms
risk mgmt chapter 1
risk
loss exposure
objective risk
subjective risk
Uncertainty concerning the occurrence of a loss
Any situation or circumstance in which a loss is possible, re…
is defined as the relative variation of actual loss from expe…
is defined as uncertainty based on a person's mental conditio…
risk
Uncertainty concerning the occurrence of a loss
loss exposure
Any situation or circumstance in which a loss is possible, re…
153 terms
Chapter 1 Security and Risk Management
Confidentiality
Integrity
Availability
Security Governance
supports the principle of least privilege - it provides only…
trustworthiness - information should be protected from intent…
makes sure info is available and users when you need it... 2 thr…
-The purpose of governance is to make sure the right security…
Confidentiality
supports the principle of least privilege - it provides only…
Integrity
trustworthiness - information should be protected from intent…
28 terms
Risk Management Chapter 1
Risk
Loss Exposure
Objective Risk
Subjective Risk
historically has been defined as uncertainty concerning the o…
any situation or circumstance in which a loss is possible reg…
the relative variation of actual loss from expected loss
uncertainty based on an individual's mental condition or stat…
Risk
historically has been defined as uncertainty concerning the o…
Loss Exposure
any situation or circumstance in which a loss is possible reg…
36 terms
Intro to Risk Chapter 1
2 main components of risk
Pure Risk
Speculative Risk
Subjective Risk
Uncertainty of outcome and possibility of negative outcome
Chance of loss or no loss, no chance of gain, focus of TRM
Chance of loss, no loss, or GAIN, focus of ERM, business risk
Perceived amount of risk based on individual or organization'…
2 main components of risk
Uncertainty of outcome and possibility of negative outcome
Pure Risk
Chance of loss or no loss, no chance of gain, focus of TRM
18 terms
Chapter 1 Vocab Risk Management
financial markets
security (financial instruments)
Asset
bond
markets in which funds are transferred from people who have a…
a claim on the issuer's future income or assets
any financial claim or piece of property that is subject to o…
a debt of security that promises to make payments periodicall…
financial markets
markets in which funds are transferred from people who have a…
security (financial instruments)
a claim on the issuer's future income or assets
31 terms
Chapter 1 RISK ASSESSMENT
RISK
RISK MANAGEMENT
RISK APPETITE
RISK MAP
UNCERTAINTY ABOUT OUTCOMES THAT CAN BE EITHER NEGATIVE OR POS…
THE PROCESS OF MAKING AND IMPLEMENTING DECISIONS THAT ENABLE…
IS THE TOTAL AMOUNT THAT AN ORGANIZATION WISHES TO UNDERTAKE…
A TEMPLATE DEPICTING THE LIKLIHOOD AND POTENTIAL IMPACT/CONCE…
RISK
UNCERTAINTY ABOUT OUTCOMES THAT CAN BE EITHER NEGATIVE OR POS…
RISK MANAGEMENT
THE PROCESS OF MAKING AND IMPLEMENTING DECISIONS THAT ENABLE…
35 terms
Risk Management Chapter 1
risk
loss exposure
objective risk
law of large numbers
uncertainty concering the occurence of a loss
any situation or circumstance in which a loss is possible, re…
relative variation of actual loss from expected loss
as the number of exposure units increases, the more closely t…
risk
uncertainty concering the occurence of a loss
loss exposure
any situation or circumstance in which a loss is possible, re…
40 terms
Risk Management Chapter 1
Objective Risk
Speculative Risk
Indirect Loss
Chance of Loss
The relative variation of actual loss from expected loss
A situation in which either profit or loss is possible
A financial loss that results indirectly from the occurrence…
The probability that an event will occur
Objective Risk
The relative variation of actual loss from expected loss
Speculative Risk
A situation in which either profit or loss is possible
27 terms
Risk and Insurance Chapter 1
Risk
loss exposure
Objective risk
subjective risk
uncertainty concerning the occurrence of a loss
any situation or circumstance in which a loss is possible
the relative variation of actual loss from expected loss... -usu…
uncertainty based on a person's mental condition or state of…
Risk
uncertainty concerning the occurrence of a loss
loss exposure
any situation or circumstance in which a loss is possible
14 terms
Risk Management 317 Chapter 1
What is the meaning of Risk
What are the 6 types of personal Risks
What are the 4 types of Business Risks
What is price risk
Risk is any situation where there is uncertainty about what o…
Earnings (Death, Disability, Aging, Unemployment) ... Medical E…
Hazard (those that pose a threat to life, health, property or…
Price risk refers to the possible changes in output and input…
What is the meaning of Risk
Risk is any situation where there is uncertainty about what o…
What are the 6 types of personal Risks
Earnings (Death, Disability, Aging, Unemployment) ... Medical E…
43 terms
Principles of Risk Management, Chapter 1
Types of risk
Pure Risk
Speculative risk
Risk
Speculative Risk... Pure Risk
Chance of loss or no loss
chance of loss and a chance of gain; business risk
Uncertainty concerning a loss arising out of a given set of c…
Types of risk
Speculative Risk... Pure Risk
Pure Risk
Chance of loss or no loss
40 terms
Chapter 1: Understanding Risk
insurance
risk
loss
claim
transfer of risk
uncertainty about loss
reduction in quality, quantity and value
demand for payment (indemnification)
insurance
transfer of risk
risk
uncertainty about loss
27 terms
Risk Mgmt: Chapter 1
Derivative
Types of Derivatives
Why are derivatives important?
how are derivatives traded?
A derivative is an instrument whose value depends on, or is d…
futures, forwards, swaps, options, exotics
-play a key role in transferring risks in the economy... -the un…
-on exchanges such as Chicago board options exchange (CBOE)... -…
Derivative
A derivative is an instrument whose value depends on, or is d…
Types of Derivatives
futures, forwards, swaps, options, exotics
12 terms
Chapter 1.8 risk and risk management
Risk
Risk Management
Speculative Risk
Pure Risk
A condition where the chance, likelihood, probability or pote…
The determination of what types of protection are required to…
Situations where there is a chance for loss, gain, or neither…
Situations where there is no chance for gain; the only outcom…
Risk
A condition where the chance, likelihood, probability or pote…
Risk Management
The determination of what types of protection are required to…
26 terms
Risk and Insurance Chapter 1
risk
loss exposure
objective risk
subjective risk
uncertainty connecting the occurrence of a loss - one without…
any situation or circumstance in which a loss is possible, re…
the relative variation of actual loss from expected loss
uncertainty based on a person's mental condition or state of…
risk
uncertainty connecting the occurrence of a loss - one without…
loss exposure
any situation or circumstance in which a loss is possible, re…
25 terms
Risk and Insurance Chapter 1
risk
loss exposure
objective risk
subjective risk
uncertainty concerning the occurrence of a loss
any situation or circumstance in which a loss is possible, re…
relative variation of actual loss from expected loss
uncertainty based on person's mental condition or state of mind
risk
uncertainty concerning the occurrence of a loss
loss exposure
any situation or circumstance in which a loss is possible, re…
23 terms
Risk Management and Insurance Chapter 1
Risk
Loss Exposure
Subjective Risk
Objective Risk
Uncertainty concerning the occurrence of loss
Any situation or circumstances in which a loss is possible, r…
Defined as uncertainty based on a person's mental condition o…
Difference between actual and expected loss.
Risk
Uncertainty concerning the occurrence of loss
Loss Exposure
Any situation or circumstances in which a loss is possible, r…
9 terms
Chapter 1 Systemic Risk
Systemic Risk
Discuss the 1914 Crisis
Idiosyncratic risk vs Systemic risk
Systemic risk vs Systematic risk
Risk of entire financial system failure, causes general econo…
Biggest systemic event in history... Triggered by an exogenous…
Idiosyncratic - affecting a single institution such as fraud…
Relates to NON-DIVERSIFIABLE risk factors that affect everyon…
Systemic Risk
Risk of entire financial system failure, causes general econo…
Discuss the 1914 Crisis
Biggest systemic event in history... Triggered by an exogenous…
25 terms
Risk Ch 1
System
Goal conflict
Goal congruence
Data
Two or more interrelated components that interact to achieve…
When a subsystem's goals are inconsistent with the goals of a…
When a subsystem achieves its goals while contributing to the…
Facts that are collected, recorded, stored, and processed by…
System
Two or more interrelated components that interact to achieve…
Goal conflict
When a subsystem's goals are inconsistent with the goals of a…
7 terms
Chapter 1 Risk and Insurance
Ignorance
Certainty
Uncertainty
Calculable Risk
We have to admit right away that in some cases, we quite simp…
If there is only one possible outcome, then that outcome is t…
If there are multiple outcomes, but the probabilities of each…
there's more than one possible outcome and we are able to ass…
Ignorance
We have to admit right away that in some cases, we quite simp…
Certainty
If there is only one possible outcome, then that outcome is t…
36 terms
Chapter 1: Risk in Our Society
Risk
Objective risk (degree of risk)
Law of large numbers
Subjective risk
Uncertainty concerning the occurence of a loss
The relative variation of actual loss from expected loss
As the number of exposure units increases, the more closely t…
Uncertainty based on a person's mental condition or state of…
Risk
Uncertainty concerning the occurence of a loss
Objective risk (degree of risk)
The relative variation of actual loss from expected loss
Risk and Insurance Chapter 1
Avoidance
Direct Loss
Financial Risk
Fundamental Risk
A risk control technique in which a certain loss exposure is…
Financial loss that results directly from an insured peril
A risk that business firms face because if adverse changes in…
A risk that effects the entire economy or a large number of p…
Avoidance
A risk control technique in which a certain loss exposure is…
Direct Loss
Financial loss that results directly from an insured peril
11 terms
Attarian Chapter 1: Introduction to Risk Management
Risk management models
Risk management
desire, responsibility, assets
Probability
Domino theory, Dynamics of Accident Theory
Is a key responsibility of outdoor adventure programs. Is a d…
Helps adventure programs and guide services provide the progr…
The goal of a risk management should be to reduce the _______…
Risk management models
Domino theory, Dynamics of Accident Theory
Risk management
Is a key responsibility of outdoor adventure programs. Is a d…
40 terms
Insurance and risk management - Chapter 1
risk
Classification of risk
Pure risk
Speculative risk
The uncertainty about the outcome, Variability of outcome - v…
Three bases - on the nature of the risk are Pure and speculat…
The kind of risk that is from the absolute loss or no loss -…
A risk that is either a profit or loss is possible.
risk
The uncertainty about the outcome, Variability of outcome - v…
Classification of risk
Three bases - on the nature of the risk are Pure and speculat…
26 terms
Children & Youth at Risk - Chapter 1 & 2
AT-RISK...
MINIMAL RISK...
REMOTE RISK...
HIGH RISK...
...denotes a set of presumed cause and effect dynamics that p…
...young people who are subjected to few psycho-social stress…
...the point on the risk continuum at which risk, although st…
...personal markers or characteristics that include aggressio…
AT-RISK...
...denotes a set of presumed cause and effect dynamics that p…
MINIMAL RISK...
...young people who are subjected to few psycho-social stress…
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