16 Questions
What term is used to describe individuals who are cautious and seek to minimize risks?
Risk-averse
In the context of risk, what is a pure risk?
Where the outcome must be capable of measurement in monetary terms
What is a claim for a motor accident considered an example of?
High frequency and low severity
Which of the following represents the main elements of risk?
Uncertainty and level of risk
What are the key components of risk management?
Identification, analysis and control
Which type of risk arises from a cause outside the control of any one individual and affects a large number of people?
A fundamental risk
Why is the risk of a commercial company losing an important contract to a competitor generally not insurable?
Speculative
What term is used to describe an individual who seeks to minimize risks and is cautious in their approach?
Risk-averse
In the context of risks, what is a pure risk?
Where there is no possibility of making a profit
Why is the risk of a commercial company losing an important contract to a competitor generally not insurable?
Speculative
When assessing the level of risk, what are the key components considered?
Certainty and predictability
Which type of risk arises from causes outside the control of any one individual and affects a large number of people?
Fundamental risk
What characterizes an event that is considered low frequency and high severity in terms of risks?
Low frequency and high severity
Which components are essential in risk management, involving identification, control, and predictability?
Identification, control, and predictability
What are the main elements that constitute risks?
Uncertainty and level of risk
What differentiates a particular risk from other types when considering its impact?
Intensity
Test your knowledge of risk management concepts with this practice paper. Questions cover topics such as risk attitudes, pure risks, and examples of insurance claims.
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