10 Questions
What is the relationship between peril, hazard, and risk?
Peril is the general cause for the damage or loss, hazard is the reason for the peril, and risk is the outcome occurred due to the peril and hazard.
What differentiates a physical hazard from other types of hazards?
Physical hazards involve the physical nature of the object as a catalyst for damage.
In the context of building materials, how can wood be classified as a hazard?
Wood is a physical hazard as it contributes to fire damage due to its nature.
What type of hazard involves factors like resources, sovereignty, and political instability?
Political Hazard
Which of the following is a correct example of a peril?
Nuclear bomb
What is the reason for the peril of explosion in a building in Yemen according to the text?
Physical foundation of the building
Which type of Hazard is caused by an evil tendency like dishonesty or lack of integrity?
Moral Hazard
What is considered a Morale Hazard according to the text?
Leaving a car key on it
According to the Principle of large number, what happens to risk when the number of exposures increases?
Risk diminishes
What relationship does the text describe between probability to lose and objective risk?
Negative relationship
Study Notes
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Test your knowledge on the differences between peril, hazard, and risk. Identify the general causes, reasons, and outcomes of damage or loss in various scenarios.
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