Podcast
Questions and Answers
Which of the following is NOT a financial risk that may be faced by a business organization?
Which of the following is NOT a financial risk that may be faced by a business organization?
- Injuries suffered by employees at the workplace (correct)
- Product liability risk
- Lost income after a fire loss
- Currency exchange rate risk
What type of risk does Mid-States Beef face if it is concerned about the price of corn increasing significantly?
What type of risk does Mid-States Beef face if it is concerned about the price of corn increasing significantly?
- Commodity price risk (correct)
- Property risk
- Interest rate risk
- Currency exchange rate risk
In an enterprise risk management program, the risk associated with an organization's property, liability, and personnel-related loss exposures is called
In an enterprise risk management program, the risk associated with an organization's property, liability, and personnel-related loss exposures is called
- Operational risk
- Hazard risk
- Financial risk (correct)
- Strategic risk
What is the operational risk associated with deviations from the organization's regular practices and procedures called?
What is the operational risk associated with deviations from the organization's regular practices and procedures called?
Which statement is true with respect to enterprise risk management programs?
Which statement is true with respect to enterprise risk management programs?
If a business wants to hedge against adverse movements in foreign exchange rates, it would be primarily concerned with mitigating which type of risk?
If a business wants to hedge against adverse movements in foreign exchange rates, it would be primarily concerned with mitigating which type of risk?
Which of the following statements is true regarding the insurance market conditions and underwriting results?
Which of the following statements is true regarding the insurance market conditions and underwriting results?
What is the probability that any vehicle will be damaged in any given year if 50 out of 200 vehicles experience property damage on average each year?
What is the probability that any vehicle will be damaged in any given year if 50 out of 200 vehicles experience property damage on average each year?
What is the repetitive pattern characterized by loose underwriting standards with low premiums followed by tight underwriting standards with high premiums in the property and liability insurance industry called?
What is the repetitive pattern characterized by loose underwriting standards with low premiums followed by tight underwriting standards with high premiums in the property and liability insurance industry called?
What is a comprehensive risk management program that addresses all of an organization's risks, including hazard risks, financial risks, strategic risks, and operational risks called?
What is a comprehensive risk management program that addresses all of an organization's risks, including hazard risks, financial risks, strategic risks, and operational risks called?
What is the chart prepared by Jessica, the risk manager, that lists all risks along with pertinent information about each risk called?
What is the chart prepared by Jessica, the risk manager, that lists all risks along with pertinent information about each risk called?
What is the relative level of surplus in the insurance industry called?
What is the relative level of surplus in the insurance industry called?
When are insurance market premiums high according to the text?
When are insurance market premiums high according to the text?
"Hard" insurance market is characterized by which of the following conditions?
"Hard" insurance market is characterized by which of the following conditions?
"Soft" insurance market is characterized by which of the following conditions?
"Soft" insurance market is characterized by which of the following conditions?
"Soft" insurance market uses more retention than in a "hard" insurance market. True or False?
"Soft" insurance market uses more retention than in a "hard" insurance market. True or False?
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