Cisr - Elements Of Risk Management
Revised Questions with Correct Answers
[Guaranteed Grade A+]
A ____ is a cause of loss - Correct Answers -peril
A situation, behavior, or condition that may lead to adverse financial consequences - Correct
Answers -exposure
A cyberattack is an example of a ____ - Correct Answers -peril
An Insured who shows no regard for his insured property demonstrates a - Correct Answers -
morale hazard
A spill on a supermarket aisle is an example of a ____ because it increases the likelihood that
someone will fall - Correct Answers -hazard
A passenger enters an elevator. His clothing is caught in the elevator door as the door closes.
The passenger snatches the clothing from the door before the elevator begins to move. He is
uninjured and his clothes are not damaged. - Correct Answers -incident
A mixing paddle on a faulty bakery mixer snaps and strikes an employee's hand. The employee's
hand is cut and bleeding - Correct Answers -accident
A driver is at fault in a minor auto accident. The other driver is uninjured, but the bumper on
her car requires repairs. The other driver demands that the at-fault driver's insurance company
pay for the loss. - Correct Answers -claim
The total dollar amount of all losses for a given period of time - Correct Answers -severity
, A loss has occurred but is unlikely to occur again in the future - Correct Answers -low frequency
An organization's tolerance for risk - Correct Answers -risk appetite
The product of loss frequency multiplied by loss severity - Correct Answers -expected losses
The total amount of losses in a given period divided by the total number of claims - Correct
Answers -average severity
A loss expected to continue occurring regularly - Correct Answers -high frequency
A cause of loss - Correct Answers -peril
An unplanned event definite as to time and place that results in injury or damage to a person or
property - Correct Answers -accident
An event that disrupts normal activities and may become a loss or business interruption -
Correct Answers -incident
A demand for payment or an obligation to pay as a result of a loss or occurrence - Correct
Answers -claim
A situation, practice, or condition that may lead to an adverse financial consequence or loss; an
activity or resource; people or assets - Correct Answers -exposure
A reduction in value - Correct Answers -loss
Revised Questions with Correct Answers
[Guaranteed Grade A+]
A ____ is a cause of loss - Correct Answers -peril
A situation, behavior, or condition that may lead to adverse financial consequences - Correct
Answers -exposure
A cyberattack is an example of a ____ - Correct Answers -peril
An Insured who shows no regard for his insured property demonstrates a - Correct Answers -
morale hazard
A spill on a supermarket aisle is an example of a ____ because it increases the likelihood that
someone will fall - Correct Answers -hazard
A passenger enters an elevator. His clothing is caught in the elevator door as the door closes.
The passenger snatches the clothing from the door before the elevator begins to move. He is
uninjured and his clothes are not damaged. - Correct Answers -incident
A mixing paddle on a faulty bakery mixer snaps and strikes an employee's hand. The employee's
hand is cut and bleeding - Correct Answers -accident
A driver is at fault in a minor auto accident. The other driver is uninjured, but the bumper on
her car requires repairs. The other driver demands that the at-fault driver's insurance company
pay for the loss. - Correct Answers -claim
The total dollar amount of all losses for a given period of time - Correct Answers -severity
, A loss has occurred but is unlikely to occur again in the future - Correct Answers -low frequency
An organization's tolerance for risk - Correct Answers -risk appetite
The product of loss frequency multiplied by loss severity - Correct Answers -expected losses
The total amount of losses in a given period divided by the total number of claims - Correct
Answers -average severity
A loss expected to continue occurring regularly - Correct Answers -high frequency
A cause of loss - Correct Answers -peril
An unplanned event definite as to time and place that results in injury or damage to a person or
property - Correct Answers -accident
An event that disrupts normal activities and may become a loss or business interruption -
Correct Answers -incident
A demand for payment or an obligation to pay as a result of a loss or occurrence - Correct
Answers -claim
A situation, practice, or condition that may lead to an adverse financial consequence or loss; an
activity or resource; people or assets - Correct Answers -exposure
A reduction in value - Correct Answers -loss
