Risk management

What is a risk?

• Risk is the losing something of value.

• Risk is gaining something of value.

• Risk is the potential to lose or gain something of value.

A physical risk is?

• The remaining amount of risk associated with something after action and precautions are taken.

• The possibility an action or task can cause an individual physical harm.

• The potential of an action causing you emotional distress. Examples of this is anxiety.

Emotional risk is?

• The remaining amount of risk associated with something after action and precautions are taken.

• The possibility an action or task can cause an individual physical harm.

• The potential of an action causing you emotional distress. Examples of this is anxiety.

Falling off your snowboard and hurting your knee is an example of a what?

• Emotional risk

• Physical risk

• Residual risk

You feel anxious to get back on to your snowboard after recently falling off. This is an example of what?

• Physical risk

• Residual risk

• Emotional risk

Risk transference nearly always involves:

• Eliminating risk through beta testing.

• Policies and procedures for a response system.

• Accepting a lower profit if some activities overrun their budget.

• Payment of a risk premium to the party taking on the risk.

The technique of assessing, minimizing, and preventing

accidental loss to a business, as through the use of insurance, safety measures, etc.

• accidental loss insurance

• business management

• risk management

• auto insurance

Having insurance transfers the risk from the ______ to the ______.

• individual, insurance company

• insurance company, individual

• homeowner, renter

• renter, homeowner

Which of the following is NOT one of the four types of risks?

• Natural

• Educational

• Financial

• Economic

• Human

Volcanoes, hurricanes, earthquakes, tornados and tsunamis are all examples of ____ risk.

• Educational

• Natural

• Human

• Economic