Podcast
Questions and Answers
The main purpose of Risk Management is to enhance the assets and income of an organization.
The main purpose of Risk Management is to enhance the assets and income of an organization.
False
Insurance is the only aspect of Risk Management.
Insurance is the only aspect of Risk Management.
False
Risk Management can be applied only in the private sector.
Risk Management can be applied only in the private sector.
False
A Risk Assessment evaluates exposures related to Property, Liability, Personnel, and Revenue.
A Risk Assessment evaluates exposures related to Property, Liability, Personnel, and Revenue.
Signup and view all the answers
Identifying risks requires an assessment of both the services provided and the assets owned by the organization.
Identifying risks requires an assessment of both the services provided and the assets owned by the organization.
Signup and view all the answers
Incident reports are crucial for identifying loss trends within organizations.
Incident reports are crucial for identifying loss trends within organizations.
Signup and view all the answers
Loss prevention methods only include physical measures such as alarms and sprinklers.
Loss prevention methods only include physical measures such as alarms and sprinklers.
Signup and view all the answers
Emergency plans are typically unnecessary in loss control programs.
Emergency plans are typically unnecessary in loss control programs.
Signup and view all the answers
Organizations should consider both the retention and transfer of risk in their risk finance strategy.
Organizations should consider both the retention and transfer of risk in their risk finance strategy.
Signup and view all the answers
All organizations purchase the same amount of insurance regardless of their needs.
All organizations purchase the same amount of insurance regardless of their needs.
Signup and view all the answers
Investing in loss control measures can often lead to greater costs than the losses incurred without them.
Investing in loss control measures can often lead to greater costs than the losses incurred without them.
Signup and view all the answers
Identifying risk exposures is not a necessity in risk control methods.
Identifying risk exposures is not a necessity in risk control methods.
Signup and view all the answers
Large, rare losses are easier to predict than small, frequent losses for organizations.
Large, rare losses are easier to predict than small, frequent losses for organizations.
Signup and view all the answers
Keith has worked in risk management since 1989.
Keith has worked in risk management since 1989.
Signup and view all the answers
Keith was awarded the Don Stuart Award in 2000 for his contributions to risk management.
Keith was awarded the Don Stuart Award in 2000 for his contributions to risk management.
Signup and view all the answers
Keith teaches courses at Simon Fraser University that lead to a 'CRM' designation.
Keith teaches courses at Simon Fraser University that lead to a 'CRM' designation.
Signup and view all the answers
Keith holds a degree in Environmental Science from O'Sullivan College.
Keith holds a degree in Environmental Science from O'Sullivan College.
Signup and view all the answers
Keith has only worked in the private sector before joining MIA.
Keith has only worked in the private sector before joining MIA.
Signup and view all the answers
Tangible property includes items such as reputation and goodwill.
Tangible property includes items such as reputation and goodwill.
Signup and view all the answers
Liability assessments must first consider exposures such as equipment and vehicle operator needs.
Liability assessments must first consider exposures such as equipment and vehicle operator needs.
Signup and view all the answers
Effective risk management only focuses on property loss exposures.
Effective risk management only focuses on property loss exposures.
Signup and view all the answers
Risk Identification is the final step in the risk management process.
Risk Identification is the final step in the risk management process.
Signup and view all the answers
Regular inspections and annual reports are examples of risk identification tools.
Regular inspections and annual reports are examples of risk identification tools.
Signup and view all the answers
The assessment process will help determine an organization's self insurance needs.
The assessment process will help determine an organization's self insurance needs.
Signup and view all the answers
Measurement and evaluation of risk is the first step in risk management.
Measurement and evaluation of risk is the first step in risk management.
Signup and view all the answers
Organizations typically do not use computer-based data to track losses.
Organizations typically do not use computer-based data to track losses.
Signup and view all the answers
Waivers can be used to completely eliminate any liability for an organization.
Waivers can be used to completely eliminate any liability for an organization.
Signup and view all the answers
Informed Consent Forms can be signed by parents or guardians to reaffirm their responsibility for a minor's injuries.
Informed Consent Forms can be signed by parents or guardians to reaffirm their responsibility for a minor's injuries.
Signup and view all the answers
The Occupiers Liability Act requires owners to ensure that their premises are in a reasonably safe condition.
The Occupiers Liability Act requires owners to ensure that their premises are in a reasonably safe condition.
Signup and view all the answers
Waivers can only be effective if they are signed by individuals who are minors.
Waivers can only be effective if they are signed by individuals who are minors.
Signup and view all the answers
The transfer of liability responsibilities to the User Group’s Insurer occurs with Additional Insured.
The transfer of liability responsibilities to the User Group’s Insurer occurs with Additional Insured.
Signup and view all the answers
User groups are not responsible for losses arising from their negligence when using an organization's facilities.
User groups are not responsible for losses arising from their negligence when using an organization's facilities.
Signup and view all the answers
Regular inspections help in budget planning and capital expenditure planning.
Regular inspections help in budget planning and capital expenditure planning.
Signup and view all the answers
Contracts should be reviewed to transfer potential loss exposures when an organization lacks control over an activity.
Contracts should be reviewed to transfer potential loss exposures when an organization lacks control over an activity.
Signup and view all the answers
Inspections conducted only on an exception basis are sufficient to prove regular inspections.
Inspections conducted only on an exception basis are sufficient to prove regular inspections.
Signup and view all the answers
It is unnecessary for user groups to provide their own general liability insurance when using an organization's facilities.
It is unnecessary for user groups to provide their own general liability insurance when using an organization's facilities.
Signup and view all the answers
Effective Risk Management can reduce exposures to accidental loss over time.
Effective Risk Management can reduce exposures to accidental loss over time.
Signup and view all the answers
Monitoring the performance of risk management processes is not important for an organization.
Monitoring the performance of risk management processes is not important for an organization.
Signup and view all the answers
Regular inspections do not have any impact on the physical life of assets.
Regular inspections do not have any impact on the physical life of assets.
Signup and view all the answers
Insurance primarily focuses on preventing losses before they occur.
Insurance primarily focuses on preventing losses before they occur.
Signup and view all the answers
Known risks in a facility include items such as wet floors and improperly closing doors.
Known risks in a facility include items such as wet floors and improperly closing doors.
Signup and view all the answers
Key personnel risks can include death, disability, and resignation.
Key personnel risks can include death, disability, and resignation.
Signup and view all the answers
Study Notes
Risk Management and Insurance
- Risk management aims to protect assets and income, impacting stakeholders
- Risk management steps are the same for private and public sectors
- Insurance is part of risk management, but losses can be insured or uninsured
- Financial consequences of losses include repairs, income loss, and added expenses
- Risk assessment involves identifying potential loss risks and resources/services needed for operations
- Departments evaluate loss impact on their operations and the overall organization
- Risk management is a tool to minimize loss financial effects for any organization
- Risk management is an ongoing, systematic effort to identify and manage losses
- Risk assessment includes reviewing property, liability, personnel, and net income exposures
Property Exposures
- Tangible property (facilities, land, equipment)
- Intangible property (reputation, goodwill, accounts receivable)
Liability Exposures
- Common law duty of care
- Statute law (occupier's liability)
- Auto liability
Personnel Exposures
- Environment regulations
- Workers' compensation
- Key personnel
- Employees
Revenue Exposures
- Income sources
- Extra expenses in the event of a loss
Risk Management Steps
- Risk Identification: Identifying resources needed for organizational goals by department and function. Tools include routine inspections, schedules, reports and contracts
- Risk Measurement and Evaluation: Measuring and evaluating future losses' frequency and severity. Analyzing loss trends, national statistics, and judicial decisions.
- Risk Control: Reducing risk levels through methods like avoidance, loss reduction, loss prevention, duplication, segregation, and contracting.
- Risk Finance: Determining how much risk to retain vs. transfer to an insurer, considering loss frequency, severity, and potential for catastrophic losses.
Risk Management Concerns - In the Arena
- Waivers: Effectively reduce liability by clearly defining loss causes; only enforceable by adults and guardians must provide informed consent for riskier activities
- Contracts: Organizations without control over a service/activity must review indemnification and insurance requirements in contracts to avoid financial losses/ liabilities
- User Groups and Special Events: User groups often hold responsibility for their actions, including indemnification (holding harmless) and provision of general liability insurance for activities in the facility.
Known Risks/Summary
- Liability: Wet floors, poorly closing doors, dumped snow access, exercise equipment hazards, storage issues, blocked exits, unsupervised activities etc.
- Property: Issues in mechanical rooms, kitchen equipment, weather conditions, increased costs to repair damaged equipment
- Personnel: Death, disability, retirement, loss of key personnel.
- Risk management helps reduce unexpected losses; Routine inspections aid with budget & planning
- Insurance addresses catastrophic losses while risk management proactively reduces exposures
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers the essential concepts of risk management and insurance, including the steps involved in risk management for both private and public sectors. It explores the financial impacts of losses, risk assessment methods, and the different types of property and liability exposures that organizations face. Test your knowledge and understanding of how to minimize financial effects and protect assets.
