Risk Mccloskey Exam 2025 With 100%
Correct Answers
Pure Risk (definition) - CORRECT ANSWER✔✔-uncertainty
-regarding events that could produce a loss
-can be losses for firms or individuals
-in financial terms=money!
-TRM (Traditional Risk Management)
Certain Loss - CORRECT ANSWER✔✔100% or 1 chance of happening
ex. death or taxes
no risk
Impossible Loss - CORRECT ANSWER✔✔0% or 0 chance of happening
no risk
Risk does not equal _____ - CORRECT ANSWER✔✔LOSS
Speculative Risk - CORRECT ANSWER✔✔-3 future states of the world
-gain, loss, or no gain or loss
-ERM (Enterprise Risk Management)
-can gain*
ex. lottery, opening a business, gambling, buying a house
, Pure Risk (characteristics) - CORRECT ANSWER✔✔-2 future states of the world
-loss
-no loss
-if it happens you lose either way
-can't gain*
ex. Texas hurricane (no winning), fire, flood, death
Static Risk - CORRECT ANSWER✔✔-Does not change significantly over time
-always present
ex. natural disasters, hurricanes, earthquakes, death, fire, violence
Dynamic Risk - CORRECT ANSWER✔✔-Arises out of changing circumstances
ex. cyber risk, drones, driverless cars with terrorism
Diversifiable Risk - CORRECT ANSWER✔✔impacts only some individuals
ex. fire
Nondiversifiable Risk - CORRECT ANSWER✔✔impacts large segments of society at once
ex. Houston, inflation, unemployment, natural disasters
Correct Answers
Pure Risk (definition) - CORRECT ANSWER✔✔-uncertainty
-regarding events that could produce a loss
-can be losses for firms or individuals
-in financial terms=money!
-TRM (Traditional Risk Management)
Certain Loss - CORRECT ANSWER✔✔100% or 1 chance of happening
ex. death or taxes
no risk
Impossible Loss - CORRECT ANSWER✔✔0% or 0 chance of happening
no risk
Risk does not equal _____ - CORRECT ANSWER✔✔LOSS
Speculative Risk - CORRECT ANSWER✔✔-3 future states of the world
-gain, loss, or no gain or loss
-ERM (Enterprise Risk Management)
-can gain*
ex. lottery, opening a business, gambling, buying a house
, Pure Risk (characteristics) - CORRECT ANSWER✔✔-2 future states of the world
-loss
-no loss
-if it happens you lose either way
-can't gain*
ex. Texas hurricane (no winning), fire, flood, death
Static Risk - CORRECT ANSWER✔✔-Does not change significantly over time
-always present
ex. natural disasters, hurricanes, earthquakes, death, fire, violence
Dynamic Risk - CORRECT ANSWER✔✔-Arises out of changing circumstances
ex. cyber risk, drones, driverless cars with terrorism
Diversifiable Risk - CORRECT ANSWER✔✔impacts only some individuals
ex. fire
Nondiversifiable Risk - CORRECT ANSWER✔✔impacts large segments of society at once
ex. Houston, inflation, unemployment, natural disasters
