Podcast
Questions and Answers
What is Loss Frequency a measure of?
What is Loss Frequency a measure of?
Which technique is considered the best approach if possible?
Which technique is considered the best approach if possible?
What does Maximum Probable Loss refer to?
What does Maximum Probable Loss refer to?
Which method is the most widely used for transferring risk?
Which method is the most widely used for transferring risk?
Signup and view all the answers
What is a critical aspect for the risk manager to have in order to be effective?
What is a critical aspect for the risk manager to have in order to be effective?
Signup and view all the answers
Why is continual evaluation of every step important in risk management?
Why is continual evaluation of every step important in risk management?
Signup and view all the answers
When should a business consider purchasing insurance coverage according to the text?
When should a business consider purchasing insurance coverage according to the text?
Signup and view all the answers
Which characteristic defines fortuitous losses in insurance?
Which characteristic defines fortuitous losses in insurance?
Signup and view all the answers
What do insurance companies provide related to risk, according to the text?
What do insurance companies provide related to risk, according to the text?
Signup and view all the answers
What is Loss Severity a measure of in risk evaluation?
What is Loss Severity a measure of in risk evaluation?
Signup and view all the answers
In risk management, what is the critical aspect of understanding both loss frequency and loss severity for a risk manager?
In risk management, what is the critical aspect of understanding both loss frequency and loss severity for a risk manager?
Signup and view all the answers
Which measure in risk evaluation deals with the largest possible loss for an activity without the element of chance?
Which measure in risk evaluation deals with the largest possible loss for an activity without the element of chance?
Signup and view all the answers
What is the most commonly used technique in risk management for transferring risk according to the text?
What is the most commonly used technique in risk management for transferring risk according to the text?
Signup and view all the answers
Why is cooperation with other departments critical for a risk manager?
Why is cooperation with other departments critical for a risk manager?
Signup and view all the answers
What is the main reason behind businesses purchasing insurance coverage according to the text?
What is the main reason behind businesses purchasing insurance coverage according to the text?
Signup and view all the answers
What distinguishes fortuitous losses from intentional losses in insurance coverage?
What distinguishes fortuitous losses from intentional losses in insurance coverage?
Signup and view all the answers
What does the law of large numbers primarily contribute to in insurance?
What does the law of large numbers primarily contribute to in insurance?
Signup and view all the answers
Why can't insurance be purchased for an intentional loss according to the text?
Why can't insurance be purchased for an intentional loss according to the text?
Signup and view all the answers
What is one of the key reasons why continual evaluation of every step is emphasized in risk management?
What is one of the key reasons why continual evaluation of every step is emphasized in risk management?
Signup and view all the answers
