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Study sets matching "risk chapter 10"

26 terms
Risk Chapter 10
declaration
insuring agreement
open-perils policy
named-perils policy
statements that provide information about the particular prop…
summarizes the major promises of the insurer
all losses are covered except those losses specifically exclu…
only those perils specifically named in the policy are covered
declaration
statements that provide information about the particular prop…
insuring agreement
summarizes the major promises of the insurer
20 terms
Chapter 10: Risk
root out
calamity
innocuous
cut and dried
phrasal verb; to find the person or thing that is causing a p…
noun; an event that causes great damage to people's lives, pr…
adjective; (1) not intended or likely to offend or upset anyo…
adjective; decided in a way that cannot be changed or argued…
root out
phrasal verb; to find the person or thing that is causing a p…
calamity
noun; an event that causes great damage to people's lives, pr…
36 terms
Risk Chapter 10
Declaration
first
Declarations
Insuring agreement
Statement that provides information about the property or act…
Declarations are usually the ___________ page of the policy
____________ are usually the first page of the policy
Summarizes the major promises of the insurer
Declaration
Statement that provides information about the property or act…
first
Declarations are usually the ___________ page of the policy
27 terms
Risk & Insurance Chapter 10
Declarations
Insurance contracts typically contain…
insuring agreement
The two basic forms of an insuring agr…
are statements that provide information about the particular…
definitions
summarizes the major promises of the insurer
Named perils policy... All-risks" policy or (open-perils policy…
Declarations
are statements that provide information about the particular…
Insurance contracts typically contain…
definitions
28 terms
Intro to Risk Mgmt Chapter 10
Total Compensation
Benefits
Types of loss exposures managed in an…
Why are EE important?
current cash salary + value of Employee (EE) benefits
Any type of compensation other than direct current wages paid…
-Medical expenses to employee... -loss of income to an EE or an…
-On average, firms spent about 40% of payroll on EE benefit... -…
Total Compensation
current cash salary + value of Employee (EE) benefits
Benefits
Any type of compensation other than direct current wages paid…
14 terms
Risk Management - Chapter 10
Present value
Discounting
Discount rate
Annuity
The value today of money that will be received in the future.
The process of calculating the present value of a future amou…
The rate of return used in determining the present value of a…
A series of fixed payments made on specified dates over a set…
Present value
The value today of money that will be received in the future.
Discounting
The process of calculating the present value of a future amou…
53 terms
Risk Management Chapter 10
Exposure: Directors and Officers suits…
Exposure: Errors and Omissions (E&O)
Exposure: Fiduciary Responsibility (Fid)
Exposure: Employment Practice Liabilit…
Claim or lawsuit from actions of the D&os's
Claim or lawsuit from Professional services provided
Claim or lawsuit based on breach of fiduciary duty
Claim or lawsuit based on employment violation
Exposure: Directors and Officers suits…
Claim or lawsuit from actions of the D&os's
Exposure: Errors and Omissions (E&O)
Claim or lawsuit from Professional services provided
28 terms
Risk and Insurance Chapter 10
declarations
definitions
insuring agreement
named perils coverage
statements that provide information about the particular prop…
page where insured is referred to as you
summarizes the major promises of the insurer
only those perils specifically named in the policy are covered
declarations
statements that provide information about the particular prop…
definitions
page where insured is referred to as you
23 terms
Risk Chapter 10
Reasons for social insurance
Basic characteristics of social insura…
Survival Benefits
Disability Benefits
To help solve problems, to provide coverage for perils that a…
Compulsory programs, floor of income, emphasis on social adeq…
Paid to the dependent of a fully or currently insured decease…
Must be disability insured meet a five month waiting period,…
Reasons for social insurance
To help solve problems, to provide coverage for perils that a…
Basic characteristics of social insura…
Compulsory programs, floor of income, emphasis on social adeq…
26 terms
Risk and Insurance Chapter 10
Declarations
Insuring agreement
named perils policy
Open Peril Policy/Special coverage pol…
Statements that provide information about the particular prop…
summarizes the major promises of the insurer... Lists the things…
only those perils specifically named in the policy are covered
all losses are covered except those losses specifically exclu…
Declarations
Statements that provide information about the particular prop…
Insuring agreement
summarizes the major promises of the insurer... Lists the things…
14 terms
HIMT2200 Chapter 10: Decreasing Risk Exposure
cause-and-effect diagram
failure mode and effects analysis (FMEA)
fishbone diagram
incident report
an investigational technique that facilitates the identificat…
technique that promotes systems thinking; includes defining h…
an investigational technique that facilitates the identificat…
structured data collection tool that risk managers use to gat…
cause-and-effect diagram
an investigational technique that facilitates the identificat…
failure mode and effects analysis (FMEA)
technique that promotes systems thinking; includes defining h…
23 terms
Risk Management - Chapter 10
1. Declarations... 2. Definitions... 3. Insu…
1. Excluded perils... 2. Excluded losses…
Some perils are not commercially insur…
Conditions
What are the 6 basic parts to an insurance contract?
All policies contain one or more exclusions. What are three m…
Why are exclusions used by insurers?
Provisions inserted in the policy that qualify or place limit…
1. Declarations... 2. Definitions... 3. Insu…
What are the 6 basic parts to an insurance contract?
1. Excluded perils... 2. Excluded losses…
All policies contain one or more exclusions. What are three m…
35 terms
Risk Management and Insurance - Chapter 10
Basic Parts of an Insurance Contract
Declarations
Insuring agreement
Two basic forms of an Insuring Agreeme…
1. Declarations... 2. Definitions... 3. Insuring agreement... 4. Exclu…
statements that provide information about the particular prop…
summarizes the major promises of the insurer
1. named-perils --> only those perils specifically named in t…
Basic Parts of an Insurance Contract
1. Declarations... 2. Definitions... 3. Insuring agreement... 4. Exclu…
Declarations
statements that provide information about the particular prop…
9 terms
Chapter 10 Risk Management
Risk
Harm
Risk manangment
Proactive strategy
the statistical calculation that an adverse outcome might occur
physical or psychological injury
the process by which an organization can reduce the opportuni…
a plan to prevent, or diminish the opportunity for adverse ou…
Risk
the statistical calculation that an adverse outcome might occur
Harm
physical or psychological injury
7 terms
Foundations of Risk Management - 9 - Bodie, Chapter 10
What are multifactor models?
How do you derive the expected return…
How do you determine the variance of a…
How do you construct a portfolio to he…
• They explain the actual return for a company/stock.... • The f…
* This is basically CAPM (SML) with more sources of macroecon…
* A key assumption here is that the nonsystematic component,…
• In order to do this, we use the APT (Arbitrage Pricing Theo…
What are multifactor models?
• They explain the actual return for a company/stock.... • The f…
How do you derive the expected return…
* This is basically CAPM (SML) with more sources of macroecon…
23 terms
Risk mgmt chapter 10
Declarations
definitions
insuring agreement
Named perils coverage
information about the activity or property to be insured
"you", "we", etc.
summarizes major points of insurer... two kinds: named perils an…
only perils specifically stated are covered
Declarations
information about the activity or property to be insured
definitions
"you", "we", etc.
14 terms
Chapter 10 - Risk Management
Declarations
Insuring agreement
exclusions
Conditions
Statements made that provide information about the particular…
summarizes major promises of insurer; either named perils pol…
excluded perils, losses, or property
provisions in the policy that qualify or place limitations on…
Declarations
Statements made that provide information about the particular…
Insuring agreement
summarizes major promises of insurer; either named perils pol…
29 terms
Risk Management Chapter 10
declarations
insuring agreement
named perils policy
open-perils policy
statements that provide information about the particular prop…
summarizes the major promises of the insurer
only those perils specifically named in the policy are covered
all loses covered except those losses specifically excluded
declarations
statements that provide information about the particular prop…
insuring agreement
summarizes the major promises of the insurer
13 terms
Risk Management Chapter 10
Declaration Page
Basic Parts of an Insurance Contract…
Basic Parts of an Insurance Contract…
Two Basis Forms of an Insuring Agreement
- contains name of the insured, location of property, period…
Defined terms used throughout the policy. These terms can be…
- Summarizes the major promises of the insurer
NAME PERILS COVERAGE... - where only those perils specifically n…
Declaration Page
- contains name of the insured, location of property, period…
Basic Parts of an Insurance Contract…
Defined terms used throughout the policy. These terms can be…
12 terms
Risk Management and Insurance Chapter 10
Parts of the Insurance Contract
Declarations
Definitions
Insuring agreement
- Declarations... - Definitions... - Insuring agreement... - Exclusion…
are statements that provide information about the particular…
it clearly defines the meaning of key words or phrases so tha…
summarizes the major promises of the insurer
Parts of the Insurance Contract
- Declarations... - Definitions... - Insuring agreement... - Exclusion…
Declarations
are statements that provide information about the particular…
27 terms
Chapter 10: Credit Risk- Individual Loan Risk
junk bonds
syndicated loan
secured loan
unsecured loan
bonds rated as speculative or less than investment grade by b…
a loan provided by a group of FIs as opposed to a single lender
a loan that is backed by a first claim on certain assets (col…
a loan that has only a general claim to the assets of the bor…
junk bonds
bonds rated as speculative or less than investment grade by b…
syndicated loan
a loan provided by a group of FIs as opposed to a single lender
25 terms
Risk and Insurance Chapter 10
declarations
insuring agreement
name perils coverage
open perils / special coverage
statements that provide information about the particular prop…
summarizes major promises of insurer
only perils specifically named in policy are covered
where all losses are covered except those specifically exclud…
declarations
statements that provide information about the particular prop…
insuring agreement
summarizes major promises of insurer
27 terms
risk and insurance chapter 10
declarations
definitions
insuring agreement
Basic forms of an insuring agreement i…
are statements that provide information about the particular…
insurance contracts typically contain a page or section of this
summarizes the major promises of the insurer
named perils coverage, and open perils or special coverage
declarations
are statements that provide information about the particular…
definitions
insurance contracts typically contain a page or section of this
25 terms
chapter 10 risk and insurance
Basic parts of an insurance contract
declarations
definitions
insuring agreement
Declarations, definitions, insuring agreement, exclusions, co…
statements that provide info about the particular property or…
key words or phrases have quotation marks or are in boldface…
summary of the major promises of the insurer.
Basic parts of an insurance contract
Declarations, definitions, insuring agreement, exclusions, co…
declarations
statements that provide info about the particular property or…
18 terms
ERM 57 - Chapter 10: Risk Modeling
Empirical probability (a posteriori pr…
Theoretical probability
Normal distribution
Extreme value theory (EVT)
A probability measure that is based on actual experience thro…
Probability that is based on theoretical principles rather th…
A probability distribution that, when graphed, generates a be…
Statistical probability estimations of extreme deviations fro…
Empirical probability (a posteriori pr…
A probability measure that is based on actual experience thro…
Theoretical probability
Probability that is based on theoretical principles rather th…
35 terms
Chapter 10: Risk Assessment
What is risk assessment
Civil commitment
Child protection
Immigration laws
-Risk is viewed as a range, probabilities change across time,…
-you're going to commit someone to a psychiatric hospital... -ta…
-happens a lot in custody disagreements... -during divorce it is…
if someone who is immigrating they might take them in fi they…
What is risk assessment
-Risk is viewed as a range, probabilities change across time,…
Civil commitment
-you're going to commit someone to a psychiatric hospital... -ta…
20 terms
Chapter 10: Risk Assessment
Considerations of Risk
Civil Contexts and Risk Assessment
True Positive
True Negative
Idea that probabilities may change across time. Recognizes th…
Civil commitment, child protection, immigration, school and l…
A correct prediction that occurs when a person who is predict…
A correct prediction that occurs when a person who is predict…
Considerations of Risk
Idea that probabilities may change across time. Recognizes th…
Civil Contexts and Risk Assessment
Civil commitment, child protection, immigration, school and l…
16 terms
Chapter 10 - Risk Assessment
Process of Risk Assessment
Baxstrom and Dixson Studies
3 Main Weaknesses of Research on the P…
3 Methods of Risk Assessment
1. Prediction - describes the probability that an individual…
- Call into question the ability of mental health professiona…
1. First issue concerns the limited number of risk factors be…
1. Unstructured clinical Judgement: decisions characterized b…
Process of Risk Assessment
1. Prediction - describes the probability that an individual…
Baxstrom and Dixson Studies
- Call into question the ability of mental health professiona…
11 terms
Chapter 10: The Rationality of Risk
The rationalization has not been compl…
Which system is tightly "coupled?
Ulrich Beck argues that the driving fo…
Horizontal knowledge gaps are:
72%
Nuclear power plant
I am afraid
gaps between experts and other experts
The rationalization has not been compl…
72%
Which system is tightly "coupled?
Nuclear power plant
9 terms
Chapter 10- Security and Risks
antivirus software
biometrics
cybercrime
encryption
program made to find virus , and telling user they have found…
A technique or device that examines a fingerprint, voice patt…
crimes used through knowledge of computer tech.
Process of converting readable data into unreadable character…
antivirus software
program made to find virus , and telling user they have found…
biometrics
A technique or device that examines a fingerprint, voice patt…
29 terms
Risk Management and Insurance - Chapter 10
Basic Parts of an Insurance Contract
Declarations
Insuring agreement
Two basic forms of an Insuring Agreeme…
1. Declarations... 2. Definitions... 3. Insuring agreement... 4. Exclu…
statements that provide information about the particular prop…
summarizes the major promises of the insurer
1. named-perils --> only those perils specifically named in t…
Basic Parts of an Insurance Contract
1. Declarations... 2. Definitions... 3. Insuring agreement... 4. Exclu…
Declarations
statements that provide information about the particular prop…
23 terms
Chapter 10 & 11 Risk and Return
Risk premium
Standard Deviation
Geometrical Average Return (Gar)
Arithmetic Average Return (Aar)
-Excess return on a risky asset over the risk-free rate... -Rewa…
The positive square root of the variance ( market total risk)
Average compound return earned per year over multiple periods…
Return earned in an average period over multiple periods
Risk premium
-Excess return on a risky asset over the risk-free rate... -Rewa…
Standard Deviation
The positive square root of the variance ( market total risk)
Risk Management & Insurance Chapter 10
declarations
definitions
insuring agreement
named-perils policy
statements that provide information about the particular prop…
define clearly the meaning of key words or phrases so that co…
summarizes the major promises of the insurer
form of insuring agreement in property insurance; only those…
declarations
statements that provide information about the particular prop…
definitions
define clearly the meaning of key words or phrases so that co…
46 terms
Chapter 10 - Managing Property and Liability Risk
Risk
Risk management
Five steps of the risk management proc…
Perils
Uncertainty about the outcome of a situation or event.
Process of identifying and evaluating purely risky situations…
1. Identify your risk exposures... 2. Estimate your risk and pot…
Any event that can cause a financial loss
Risk
Uncertainty about the outcome of a situation or event.
Risk management
Process of identifying and evaluating purely risky situations…
30 terms
Chapter 10: Risk Management & Insurance
Risk
2 types of risk Are
Speculative risk
Pure risk
The possibility that what actually happens will be different…
Speculative risk & pure risk
You may gain, lose, or stay the same. Ex. Starting a business…
You can only stay the same or lose
Risk
The possibility that what actually happens will be different…
2 types of risk Are
Speculative risk & pure risk
29 terms
Risk Management and Insurance - Chapter 10
Basic Parts of an Insurance Contract
Declarations
Insuring agreement
Two basic forms of an Insuring Agreeme…
1. Declarations... 2. Definitions... 3. Insuring agreement... 4. Exclu…
statements that provide information about the particular prop…
summarizes the major promises of the insurer
1. named-perils --> only those perils specifically named in t…
Basic Parts of an Insurance Contract
1. Declarations... 2. Definitions... 3. Insuring agreement... 4. Exclu…
Declarations
statements that provide information about the particular prop…
8 terms
Chapter 10 Risk Management and Insurance
Declarations
Insuring Agreement
Named Perils Policy
"all risks" Policy
Are statements that provide a particular property or activity…
Summarizes the major promises of the insurer
where only the perils specifically named in the policy are co…
where all loses are covered except those specifically named.
Declarations
Are statements that provide a particular property or activity…
Insuring Agreement
Summarizes the major promises of the insurer
75 terms
DE Chapter 10-NOTES risk and security
Spear phishing
Identity thieves
BYOD
Geo-fencing
incorporates a vast amount of personal... data about the user fr…
obtain password clues from personal... data shared on social sites
policy that creates risks that arise from the millions of mob…
disables cameras in high-security areas; difficult to impleme…
Spear phishing
incorporates a vast amount of personal... data about the user fr…
Identity thieves
obtain password clues from personal... data shared on social sites
38 terms
Risk Chapter 10 ER Provided Benefits
ER provided benefits
total compensation view
$1 total compensation=
30/70
any type of compensation other than direct wages
compensation = cash value + value of EE benefits
$.70 salary + $.30 EE benefit
.4286 paid by ER for every salary dollar
ER provided benefits
any type of compensation other than direct wages
total compensation view
compensation = cash value + value of EE benefits
12 terms
Chapter 10 Risk management insurance
PAP Summary of Coverages
Covered Autos
A: Insuring Agreement
A: Liability Coverage
A: Liability Coverage ... B: Medical Payments Coverage ... C: Unins…
1. Any vehicle shown in declaration ... 2. A newly acquired auto…
-Insurer will cover bodily injury or property damage
The amount for bodily injury and property damage are stated s…
PAP Summary of Coverages
A: Liability Coverage ... B: Medical Payments Coverage ... C: Unins…
Covered Autos
1. Any vehicle shown in declaration ... 2. A newly acquired auto…
44 terms
Chapter 10: High Risk High-risk Labor and Birth
Dystocia
Dysfunctional Labor: Maternal Position
Dysfunctional Labor: Psychological Res…
Dysfunctional Labor: Powers
Abnormal labor that results from abnormalities of the powers,…
Mechanical advantages... Avoidance of prolonged recumbent/lithot…
Pain and absence of support person related to dystocia... Stress…
Maternal exhaustion... Epidural anesthesia with no urge to push
Dystocia
Abnormal labor that results from abnormalities of the powers,…
Dysfunctional Labor: Maternal Position
Mechanical advantages... Avoidance of prolonged recumbent/lithot…
64 terms
Interpreting Risks Chapter 10
Measures of association is helpful with
prevalence
incidence
Three main types of risk ratios
assessing treatment effect and the importance of the results…
proportion of people with a condition at a specific point in…
the rate which people develop a condition at a specific point…
Relative Risk,Odds Ratio, Hazards Ratio
Measures of association is helpful with
assessing treatment effect and the importance of the results…
prevalence
proportion of people with a condition at a specific point in…
17 terms
Risks Chapter 10 Vocab
Turnaround Document
Field Check
Sign Check
Limit check
A record of company data sent to an external party and then r…
An edit check that tests whether the characters in a field ar…
An edit check that verifies that the data in a field have the…
an edit check that tests a numerical amount against a fixed v…
Turnaround Document
A record of company data sent to an external party and then r…
Field Check
An edit check that tests whether the characters in a field ar…
15 terms
Chapter 10: Biodiversity at Risk
Mass Extinction
What is the primary cause of the extin…
What types of species are more likely…
Endangered species
The extinction of many species in a relatively short period o…
Humans
Small populations in limited areas; species that migrate spec…
Species that are likely to become extinct if protective measu…
Mass Extinction
The extinction of many species in a relatively short period o…
What is the primary cause of the extin…
Humans
16 terms
Chapter 10 & 11: Credit Risk
35. From the perspective of an FI, whi…
36. Which of the following observation…
37. This is true of commercial paper.…
38. Revolving loans are credit lines…
E. The interest rate risk is transferred to the borrower
A. They are less credit risky than fixed-rate loans
C. It may help a corporation to raise funds often at rates be…
D. On which a borrower can both draw and repay many times ove…
35. From the perspective of an FI, whi…
E. The interest rate risk is transferred to the borrower
36. Which of the following observation…
A. They are less credit risky than fixed-rate loans
26 terms
Biodiversity At Risk- Chapter 10
What does extinct mean
When does a mass extinction occur
Threatened species are
An endangered species is
When the last member of a species has died
when numerous species die, in a relatively short period od time
those with declining numbers. They will likely become endange…
one that will likely become extinct unless immediate action i…
What does extinct mean
When the last member of a species has died
When does a mass extinction occur
when numerous species die, in a relatively short period od time
29 terms
Chapter 10- Project Cash Flows & Risk
Cash Flow Estimation
Financial staff's role includes
Relevant Cash Flows
Incremental Cash Flows
Most important and most difficult step in the analysis of a c…
-Coordinating other departments' efforts.... -Ensuring that ever…
The specific set of cash flows that should be considered in t…
An Incremental Cash Flow is the change in a firm's net cash f…
Cash Flow Estimation
Most important and most difficult step in the analysis of a c…
Financial staff's role includes
-Coordinating other departments' efforts.... -Ensuring that ever…
26 terms
Risk Management 4000 Chapter 10 Vocab
Additional insured
Aggregate deductible
All risks policy
Calendar year deductible
Person or party who is added to the named insured's policy by…
Deductible in some property and health insurance contracts in…
Coverage by an insurance contract that promises to cover all…
Amount payable by an insured during a calendar year before a…
Additional insured
Person or party who is added to the named insured's policy by…
Aggregate deductible
Deductible in some property and health insurance contracts in…
31 terms
Chapter 10 - Internal Control & Control Risk
Management responsibility for internal…
Management has three broad objectives…
Management's reporting responsibilitie…
Managements assessment of internal con…
1. Management must establish and maintain the entity's intern…
1. Compliance with laws and regulations... 2. Reliability of fi…
1. Statement that management is responsible for establishing…
1. Management must evaluate the design of internal controls o…
Management responsibility for internal…
1. Management must establish and maintain the entity's intern…
Management has three broad objectives…
1. Compliance with laws and regulations... 2. Reliability of fi…
15 terms
Chapter 10 Internal Control and Control Risk
Internal Control
Reasonable assurance
Limitations of internal control
Sarbanes Oxley Requires
a system of policies and procedures designed to provide manag…
Internal control developed by mgt provide reasonable assuranc…
mistakes in judgement... misunderstanding instruction... carelessne…
A statement that management is responsible for establishing a…
Internal Control
a system of policies and procedures designed to provide manag…
Reasonable assurance
Internal control developed by mgt provide reasonable assuranc…
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