Study sets matching "risk chapter 1"
Study sets
Diagrams
Classes
Users
B
C
D
E
Economic collapse during the 1930s, the banking system in the…
Depository financial institutions include all of the following…
Nondepository financial institutions are represented by all of…
Which of the following statements is FALSE?... A. A financial in…
B
Economic collapse during the 1930s, the banking system in the…
C
Depository financial institutions include all of the following…
Loss Exposure
Objective Risk
Subjective Risk
Chance of Loss
Any situation or circumstance in which a loss is possible, reg…
is defined as the relative variation of actual loss from expec…
is defined as uncertainty based on a person's mental condition…
The probability that an event will occur
Loss Exposure
Any situation or circumstance in which a loss is possible, reg…
Objective Risk
is defined as the relative variation of actual loss from expec…
Risk
Risk is used...
Uncertainty is used...
loss exposure
uncertainty concerning the occurrence of a loss
where the probabilities of possible outcomes are known or can…
where such probabilities cannot be estimated
any situation in which a loss is possible, regardless of wheth…
Risk
uncertainty concerning the occurrence of a loss
Risk is used...
where the probabilities of possible outcomes are known or can…
Risk
Objective risk
Subjective risk
Objectively; Subjectively
Relative variation from expectations
-Relative variation from experience... -Measurable by looking at…
-Uncertainty based on thoughts
Most risks are both "___" and "___" risky, that is, unless you…
Risk
Relative variation from expectations
Objective risk
-Relative variation from experience... -Measurable by looking at…
Risk definition
The two elements with in the definition…
possibility and probability
Most common types of risk
uncertaintiy of an outcome withe the possibilty of a negative…
uncertainty of an outcome... possibility of a negative out come
possiblity doesnt quantify risk;it only verfies that risk is p…
Pure and speculative risk... Subjective and objective... diversable…
Risk definition
uncertaintiy of an outcome withe the possibilty of a negative…
The two elements with in the definition…
uncertainty of an outcome... possibility of a negative out come
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 outc…
Any situation in which a loss is possible, regardless of wheth…
Risk
Uncertainty concerning the occurrence of a loss
Risk
The property or life that is being considered for insurance
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 l…
A risk that exists when there exists uncertainty about an even…
Risk
Uncertainty as to loss
Risk Management
the process used to systematically manage risk exposures
Risk
Risk is used in situations where?
Uncertainty is used when?
Loss Exposure
Uncertainty concerning the occurrence of a loss.
The probabilities of possible outcomes are known.
probabilities cannot be estimated.
Any situation in which a loss is possible, regardless of wheth…
Risk
Uncertainty concerning the occurrence of a loss.
Risk is used in situations where?
The probabilities of possible outcomes are known.
Risk
objective risk
subjective risk
chance of loss
uncertainty concerning future outcome
relative variance of actual outcome from expected outcome
individual's perception of a risk. risk can involve positive &…
probability that event will occur
Risk
uncertainty concerning future outcome
objective risk
relative variance of actual outcome from expected outcome
Risk
Uncertainty
Loss Exposure
Objective risk
Uncertainty concerning the occurrence of a loss
used in situations where such probabilities cannot be estimated
Any situation or circumstance in which a loss is possible, reg…
is defined as the relative variation of actual loss from expec…
Risk
Uncertainty concerning the occurrence of a loss
Uncertainty
used in situations where such probabilities cannot be estimated
Enterprise RM
Risk (definition)
RM (definition)
Risk Profile
Considering all of the risks that an organization faces
Uncertainty concerning loss
The process of risk identification, risk analysis, selection a…
A set of characteristics common to all risks n a portfolio
Enterprise RM
Considering all of the risks that an organization faces
Risk (definition)
Uncertainty concerning loss
indirect losses
Driving at lower speeds in order to red…
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 red…
loss control
Risk Management was concerned with the…
Expected Loss
Variance
Uncertainty about outcome
Pure and accidental loss
The expected loss (value) to be paid by an insurer; the averag…
Variability around expected value. Stocks - technology stock i…
Starting new job, driving a car, buying a home on the coast
Risk Management was concerned with the…
Pure and accidental loss
Expected Loss
The expected loss (value) to be paid by an insurer; the averag…
The core of Risk Management is the ____…
KNOWN risks need
UNKNOWN risks need
A probability of an event happening 100…
known
contingency plans////////////////// IF WE KNOW THE RISKS, WE N…
reserves (time or money)
...
The core of Risk Management is the ____…
known
KNOWN risks need
contingency plans////////////////// IF WE KNOW THE RISKS, WE N…
risk
loss exposure
objective risk
subjective (perceived) risk
traditional: uncertainty concerning the occurrence of a loss... i…
any situation or circumstance in which a loss is possible, reg…
relative variation of actual loss from expected loss; can be s…
uncertainty based on a person's mental condition or state of m…
risk
traditional: uncertainty concerning the occurrence of a loss... i…
loss exposure
any situation or circumstance in which a loss is possible, reg…
Risk
Loss exposure
Objective Risk
Law of large numbers
Uncertainty concerning the occurrence of a loss
Any situation or circumstance in which a loss is possible, reg…
Relative variation of actual loss from expected loss
As the number of exposure units increases, the more closely th…
Risk
Uncertainty concerning the occurrence of a loss
Loss exposure
Any situation or circumstance in which a loss is possible, reg…
Loss Exposure
Objective Risk
Subjective (Perceived) Risk
Chance of Loss
Any situation or circumstance in which a loss is possible, reg…
the relative variation of actual loss from expected loss
uncertainty based on a person's mental condition or state of m…
The probability that an event that causes loss will occur
Loss Exposure
Any situation or circumstance in which a loss is possible, reg…
Objective Risk
the relative variation of actual loss from expected loss
Risk
Loss exposure
Objective risk
Law of large numbers
Uncertainty concerning the occurrence of a loss
Any situation or circumstance in which a loss is possible, reg…
Degree of risk; the relative variation of actual loss from exp…
States that as the number of exposure units increases, the mor…
Risk
Uncertainty concerning the occurrence of a loss
Loss exposure
Any situation or circumstance in which a loss is possible, reg…
Acceptable Use Policy / rules of behavi…
ALE
ARO
AV
Agreed-upon principles put in place by a company to govern how…
Annual loss expectancy- A calculation used to identify risks a…
Annualized Rate of Occurrence- A calculation of how often a th…
The assessed value of an item
Acceptable Use Policy / rules of behavi…
Agreed-upon principles put in place by a company to govern how…
ALE
Annual loss expectancy- A calculation used to identify risks a…
two types of Islamic financial contracts
li-tijari contract
li-tabarru' contract
Universal complimentarity
li-tabarru' and li-tijari
the contract for the purpose of generating profit
contract that is made with the purpose of giving reward, aid o…
Every economic agent that is involved in a financial transacti…
two types of Islamic financial contracts
li-tabarru' and li-tijari
li-tijari contract
the contract for the purpose of generating profit
Risk
Loss Exposure
Objective Risk
Subjective Risk
historically has been defined as uncertainty concerning the oc…
any situation or circumstance in which a loss is possible rega…
the relative variation of actual loss from expected loss
uncertainty based on an individual's mental condition or state…
Risk
historically has been defined as uncertainty concerning the oc…
Loss Exposure
any situation or circumstance in which a loss is possible rega…
Risk Calculation
Risk
Acceptable use Policy/Rules of Behavior
Annual Loss Expectancy (ALE)
the process of calculating the risks that exist in terms of co…
the probability that a particular threat will occur, either ac…
agreed-upon principles set forth by a company to govern how th…
a calculation used to identify risks and calculate the expecte…
Risk Calculation
the process of calculating the risks that exist in terms of co…
Risk
the probability that a particular threat will occur, either ac…
Risk
2 Elements of Risk
Probability
Pure Risk
The uncertainty about outcomes, with the possibility that the…
1. Uncertainty of outcome... 2. Possibility of Negative Outcome
The likelihood that an outcome or event will occur
Chance of loss or no loss, but no chance of gain
Risk
The uncertainty about outcomes, with the possibility that the…
2 Elements of Risk
1. Uncertainty of outcome... 2. Possibility of Negative Outcome
What is Risk Management
What are the two core concepts ion Risk…
What is the decision making view in unc…
What is the information view in uncerta…
It is a process that enables organisations to identify potenti…
Uncertainty and Risk
1. The order or nature of things is unknown... 2. The consequence…
The degree to which available choices or the outcomes of possi…
What is Risk Management
It is a process that enables organisations to identify potenti…
What are the two core concepts ion Risk…
Uncertainty and Risk
Risk
Loss exposure
Objective risk vs Subjective risk
Objective probability vs Subjective pro…
uncertainty concerning the occurrence of a loss.
any situation or circumstance in which a loss is possible, reg…
the relative variation of actual loss from expected vs uncerta…
the long run relative frequency of an event based on the assum…
Risk
uncertainty concerning the occurrence of a loss.
Loss exposure
any situation or circumstance in which a loss is possible, reg…