Risk Management questions TOP HAT Ch 1. Que With Complete Solutions

Which of the following would be an example of a pure risk? a The risk from opening a small business b The risk of fire damage to a restaurant c The risk of a change in tax rates d All of the above - ANS B Cyber attack risk would be best classified as a Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a pure static risk b pure dynamic risk c speculative static risk d speculative dynamic risk - ANS B In decimal terms, what is the probability of getting a number greater than 3 when rolling a die? - ANS 0.5 Joe looks at a particular situation and considers it to be high risk. Sarah looks at the exact same situation and considers it low risk. Their difference of opinion illustrates the concept of ____ Risk - ANS subjective The formula used to calculate the degree of objective risk is - ANS probable variation (PV) of actual from expected losses divided(/) by the expected loss 4 steps of risk management in order - ANS identify risks, evaluate risk, select risk management techniques, implement and review decisions The approach to risk management which reflects the intent to manage all forms of risk, regardless of type, is called _____ risk management - ANS integrated Gail knows that the expected loss for a particular risk she faces is $1,000. If she is willing to $1,200 to buy insurance that fully protects her from that risk, we know that Gail is risk - ANS averse