⚠️ RSK4801 – Operational Risk
Management | Assignment 04 Study |
Verified Questions & Answers
pure risk - ✔✔ANSWER✔✔->>uncertainty regarding a loss or
event which might induce a loss
if the peril is a flood, what would be a physical hazard for the
property? why? - ✔✔ANSWER✔✔->>its location being in a
flood zone
impact is on frequency, no impact on severity
if the peril is a fire, what would be considered a physical
hazard? why? - ✔✔ANSWER✔✔->>the house being a framed
structure
impact is on severity
if the peril is an earthquake, what would be considered a
physical hazard? why? - ✔✔ANSWER✔✔->>the house being
brick
impact on severity
,if the peril is a fire, use of church is a physical hazard because
- ✔✔ANSWER✔✔->>Church's are often vacant so it will
impact severity
moral hazard - ✔✔ANSWER✔✔->>presence of an insurance
contract that changes behavior of the insured so that either
frequency or severity increases
in pure risk, losses can be valued in _______ terms -
✔✔ANSWER✔✔->>financial
a loss with 100% probability is a ________ ____________ -
✔✔ANSWER✔✔->>known loss
is there risk present in a known loss? - ✔✔ANSWER✔✔->>no
3 ways to handle a known loss - ✔✔ANSWER✔✔->>budget,
engage in loss mitigation activities, avoid loss situation
who is the COO of Marsh and McLennan? - ✔✔ANSWER✔✔-
>>Boris Korchi
, a risk map is used to - ✔✔ANSWER✔✔->>identify risks the
company may face
impact = - ✔✔ANSWER✔✔->>severity (y axis)
likelihood = - ✔✔ANSWER✔✔->>frequency (x axis)
in pure risk, how many possible states are there and what are
they? - ✔✔ANSWER✔✔->>2 / loss or no loss
how are losses caused in pure risk? - ✔✔ANSWER✔✔-
>>random events (flood, sickness)
Is pure risk insurable? - ✔✔ANSWER✔✔->>yes
in speculative risk, how many possible states are there and
what are they? - ✔✔ANSWER✔✔->>3 / loss, gain or no loss
or gain
investments, starting a business, gambling, and developing a
product line are all examples of what type of risk? -
✔✔ANSWER✔✔->>speculative risk
Management | Assignment 04 Study |
Verified Questions & Answers
pure risk - ✔✔ANSWER✔✔->>uncertainty regarding a loss or
event which might induce a loss
if the peril is a flood, what would be a physical hazard for the
property? why? - ✔✔ANSWER✔✔->>its location being in a
flood zone
impact is on frequency, no impact on severity
if the peril is a fire, what would be considered a physical
hazard? why? - ✔✔ANSWER✔✔->>the house being a framed
structure
impact is on severity
if the peril is an earthquake, what would be considered a
physical hazard? why? - ✔✔ANSWER✔✔->>the house being
brick
impact on severity
,if the peril is a fire, use of church is a physical hazard because
- ✔✔ANSWER✔✔->>Church's are often vacant so it will
impact severity
moral hazard - ✔✔ANSWER✔✔->>presence of an insurance
contract that changes behavior of the insured so that either
frequency or severity increases
in pure risk, losses can be valued in _______ terms -
✔✔ANSWER✔✔->>financial
a loss with 100% probability is a ________ ____________ -
✔✔ANSWER✔✔->>known loss
is there risk present in a known loss? - ✔✔ANSWER✔✔->>no
3 ways to handle a known loss - ✔✔ANSWER✔✔->>budget,
engage in loss mitigation activities, avoid loss situation
who is the COO of Marsh and McLennan? - ✔✔ANSWER✔✔-
>>Boris Korchi
, a risk map is used to - ✔✔ANSWER✔✔->>identify risks the
company may face
impact = - ✔✔ANSWER✔✔->>severity (y axis)
likelihood = - ✔✔ANSWER✔✔->>frequency (x axis)
in pure risk, how many possible states are there and what are
they? - ✔✔ANSWER✔✔->>2 / loss or no loss
how are losses caused in pure risk? - ✔✔ANSWER✔✔-
>>random events (flood, sickness)
Is pure risk insurable? - ✔✔ANSWER✔✔->>yes
in speculative risk, how many possible states are there and
what are they? - ✔✔ANSWER✔✔->>3 / loss, gain or no loss
or gain
investments, starting a business, gambling, and developing a
product line are all examples of what type of risk? -
✔✔ANSWER✔✔->>speculative risk
