STUDENTS SUCCESS
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
RSK2601 PACK ASSIGNMENTS 5 SEMESTER 2 2024 /2025 -
DISTINCTION GUARANTEED 100%
Accident
ans:>An unexpected and unintentional event that tends to result in
damage or injury
Accounting Rate of Return (ARR)
ans:>A tool that measures the percentage return of average annual cash
flows on initial investment
Active Retention
ans:>A planned financing solution in which internal funds can be used to
pay losses
Avoidance
ans:>Precludes or discontinues an activity to avoid the chance of loss,
eliminating both positive and negative outcomes
Budgeted Retention
ans:>The portion of expected losses an organization is willing and able
to retain
Claim
ans:>A demand for payment or a company's obligation to pay as result
of a loss or occurrence
Contractual Transfer
ans:>The shift of responsibility of certain liabilities to another party;
includes exculpatory agreements, waivers of subrogation, limit of liability
clauses, and hold harmless agreements
Cost-Benefit Analysis
,ans:>A measurement of total anticipated benefits after costs are
subtracted
Deductible Plan
ans:>A risk financing program in which an insured elects to reimburse
the insurer for losses up to a stated amount
Dividend Plan
ans:>A guaranteed cost plan that has dividend options which return a
portion of the premium when an insurer has had an overall good year
and the insured meets a certain loss ratio criterion
Duplication
ans:>Establishing backups for critical systems or operations
Economic Class of Risks
ans:>Risks arising from internal operations, general economic
conditions, external competition, conditions in the financial marketplace,
and entrepreneurial activities, such as new products or services
Exculpatory Agreement
ans:>A pre-event exoneration of one party for events that may result in
any loss or a specified loss to another party
Expected Losses
ans:>An estimate of total losses of a given type that an insurance
company can "expect" in a given period
Exposure
ans:>A situation, practice, or condition that may lead to an insured's
susceptibility to adverse financial consequences or loss
External Financing
ans:>Insurance purchased to pay for losses that fall outside an
organization's risk appetite and ability
Frequency
ans:>The number of claims that occur, or an insurer expects to occur,
within a given period of time
Guaranteed Cost Plan
ans:>A finance plan for organizations that have low risk appetites, desire
little variability in cost of risk, and have little or no ability to manage
,services. The rate is multiplied by the exposure and is then adjusted by
both the experience modifier and any scheduled and/or discretionary
credits/debits.
Hazard
ans:>A factor that increases the likelihood a peril will occur
Heat Mapping
ans:>A visual representation of complex sets of data interpretations
which uses colors to indicate patterns or groupings of how risk will
impact an organization
Hold Harmless Agreement
ans:>An arrangement whereby one party assumes the liability inherent
in a situation, thereby relieving another party of that liability
Human Resources
ans:>An organization's internal people exposure
Implementation
ans:>The part of Risk Administration in which a desired risk
management plan is initiated
Incident
ans:>An event that may lead to a loss or a claim, or may cause a
business interruption
Indemnification Agreement
ans:>Another name for a hold harmless agreement
Indemnitee
ans:>The party in a hold harmless agreement that is relieved of liability
Indemnitor
ans:>The party in a hold harmless agreement that assumes liability
Insurable Risk
ans:>A risk an underwriter may perceive as something that has little
chance of occurring and low severity should it occur. An insurable risk,
from a risk manager's perspective, is an exposure that is often subject to
loss and can negatively affect an organization.
Insurance
, ans:>A promise of compensation for specified losses in exchange for
payment of premium
Intangible Property
ans:>Property that has value but no physical form
Juridical Class of Risks
ans:>Risks arising from decisions made by judges and juries, or adverse
trends in the legal climate
Legal Class of Risks
ans:>Risks inherent in compliance or arising from common law and
statutory liability
Likelihood
ans:>The chance that something will happen
Limit of Liability Clause
ans:>A pre-event limitation of the amount, type, or method of calculation
of damages available to one or both parties to an agreement
Loss
ans:>A reduction in asset value
Loss Development
ans:>The process by which data are adjusted to account for lag time to
settle claims, recognize frequency development, and index for inflation
Loss Development Factor (LDF)
ans:>A value used to adjust (multiply) known claims to determine an
anticipated value for claims over a specific time period
Loss Projection
ans:>The use of historical loss data to predict future risk frequency and
severity; also called loss forecast
Loss Reduction
ans:>The process of adjusting historical losses with factors such as
inflation; this allows historical losses to be valued in current dollar
amounts
Loss Trending
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
RSK2601 PACK ASSIGNMENTS 5 SEMESTER 2 2024 /2025 -
DISTINCTION GUARANTEED 100%
Accident
ans:>An unexpected and unintentional event that tends to result in
damage or injury
Accounting Rate of Return (ARR)
ans:>A tool that measures the percentage return of average annual cash
flows on initial investment
Active Retention
ans:>A planned financing solution in which internal funds can be used to
pay losses
Avoidance
ans:>Precludes or discontinues an activity to avoid the chance of loss,
eliminating both positive and negative outcomes
Budgeted Retention
ans:>The portion of expected losses an organization is willing and able
to retain
Claim
ans:>A demand for payment or a company's obligation to pay as result
of a loss or occurrence
Contractual Transfer
ans:>The shift of responsibility of certain liabilities to another party;
includes exculpatory agreements, waivers of subrogation, limit of liability
clauses, and hold harmless agreements
Cost-Benefit Analysis
,ans:>A measurement of total anticipated benefits after costs are
subtracted
Deductible Plan
ans:>A risk financing program in which an insured elects to reimburse
the insurer for losses up to a stated amount
Dividend Plan
ans:>A guaranteed cost plan that has dividend options which return a
portion of the premium when an insurer has had an overall good year
and the insured meets a certain loss ratio criterion
Duplication
ans:>Establishing backups for critical systems or operations
Economic Class of Risks
ans:>Risks arising from internal operations, general economic
conditions, external competition, conditions in the financial marketplace,
and entrepreneurial activities, such as new products or services
Exculpatory Agreement
ans:>A pre-event exoneration of one party for events that may result in
any loss or a specified loss to another party
Expected Losses
ans:>An estimate of total losses of a given type that an insurance
company can "expect" in a given period
Exposure
ans:>A situation, practice, or condition that may lead to an insured's
susceptibility to adverse financial consequences or loss
External Financing
ans:>Insurance purchased to pay for losses that fall outside an
organization's risk appetite and ability
Frequency
ans:>The number of claims that occur, or an insurer expects to occur,
within a given period of time
Guaranteed Cost Plan
ans:>A finance plan for organizations that have low risk appetites, desire
little variability in cost of risk, and have little or no ability to manage
,services. The rate is multiplied by the exposure and is then adjusted by
both the experience modifier and any scheduled and/or discretionary
credits/debits.
Hazard
ans:>A factor that increases the likelihood a peril will occur
Heat Mapping
ans:>A visual representation of complex sets of data interpretations
which uses colors to indicate patterns or groupings of how risk will
impact an organization
Hold Harmless Agreement
ans:>An arrangement whereby one party assumes the liability inherent
in a situation, thereby relieving another party of that liability
Human Resources
ans:>An organization's internal people exposure
Implementation
ans:>The part of Risk Administration in which a desired risk
management plan is initiated
Incident
ans:>An event that may lead to a loss or a claim, or may cause a
business interruption
Indemnification Agreement
ans:>Another name for a hold harmless agreement
Indemnitee
ans:>The party in a hold harmless agreement that is relieved of liability
Indemnitor
ans:>The party in a hold harmless agreement that assumes liability
Insurable Risk
ans:>A risk an underwriter may perceive as something that has little
chance of occurring and low severity should it occur. An insurable risk,
from a risk manager's perspective, is an exposure that is often subject to
loss and can negatively affect an organization.
Insurance
, ans:>A promise of compensation for specified losses in exchange for
payment of premium
Intangible Property
ans:>Property that has value but no physical form
Juridical Class of Risks
ans:>Risks arising from decisions made by judges and juries, or adverse
trends in the legal climate
Legal Class of Risks
ans:>Risks inherent in compliance or arising from common law and
statutory liability
Likelihood
ans:>The chance that something will happen
Limit of Liability Clause
ans:>A pre-event limitation of the amount, type, or method of calculation
of damages available to one or both parties to an agreement
Loss
ans:>A reduction in asset value
Loss Development
ans:>The process by which data are adjusted to account for lag time to
settle claims, recognize frequency development, and index for inflation
Loss Development Factor (LDF)
ans:>A value used to adjust (multiply) known claims to determine an
anticipated value for claims over a specific time period
Loss Projection
ans:>The use of historical loss data to predict future risk frequency and
severity; also called loss forecast
Loss Reduction
ans:>The process of adjusting historical losses with factors such as
inflation; this allows historical losses to be valued in current dollar
amounts
Loss Trending
