Rmi Basic Test Review

Rmi Basic Test Review

diversifiable risk     different activities w/ different levels of risk
non diversifiable risk     no way of getting rid of the risk. Ex: natural disaster
Fundamental risk     effects many exposure units at the same time
particular risk     effects one exposure unit at a time
9 major duties of risk managers     buy insurance, identify risk, loss prevention, loss control, contract review, gov't compliance w/ safety issues, risk finance, claims management and litigation support, employee benefits
5 steps of Risk management process     mission identification (goal), risk identification, risk analysis, consider alternatives, implement and monitor
hazard     increases likelihood of losses/bad event. Applies to pure risks.
risk factor     effects the likelihood/severity of a gain or loss
peril     actual cause of loss
exposure     item that's subject to loss.
difficulties w/ risk identification     (world is changing) new laws, new discoveries, and changing societal attitudes
property exposures     buildings, vehicles, $. They have a direct and indirect result
liability exposure     someone else has experienced a loss and now they're suing the person who's fault it was
Human Resource Exposures     costs relating to employees
Bailed property     Non-owned: repair shop. Give them your computer.
Leased Property     Non-owned: things you rent
Property on Consignment     Non-owned: property someone owns and another person is trying to sell it for them
Employee's property     Non-owned: employees bring their own things of value to work, to use
property under lien     Non-owned: You owe someone money so if you don't pay in time, they will get something of yours so that they can sell it for the money you owe them.
agency relationship     non-owned: condo's for example. Run like a gov't, have a board to set rules and buy insurance and stuff for the whole agency (condo)
contingent property     non-owned property: property someone will own, once certain contingencies are met. Ex:...

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