Understanding Risk Elements

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What is the direct loss?

Loss caused by civil liability towards others

Loss suffered by a large group of people

Loss that directly affects the asset and its effects appear on it (correct)

Loss represented by natural factors that humans have effect in their existence or occurrence

What is an example of an indirect loss?

Exposure to the dangers of wars, storms, and earthquakes

Natural factors that humans have no effect in their existence or occurrence

Factors that lead to an increase in the loss resulting from human intervention, but without intention

Cost of workers’ wages during the period of restoring the factory (correct)

What is a peril in terms of risk hazards?

Risks that do not result in any measurable material loss

Anything that either causes or increases the likelihood of a loss (correct)

Group of factors that lead to an increase in the loss resulting from human intervention, but with intention

Natural factors that humans have effect in their existence or occurrence

Which classification of hazard includes natural factors that humans have no effect in their existence or occurrence?

Natural hazards Signup and view all the answers

What are non-economic risks?

Risks that do not result from the realization of its hazard in the form an accident any measurable material loss Signup and view all the answers

What is the probability range for the occurrence of loss according to the text?

0 < 𝑝 < 1 Signup and view all the answers

How does the text define 'accident' in the context of risk?

The physical verification of risk hazards resulting in financial loss Signup and view all the answers

What does 'moral loss' refer to based on the text?

The pain caused by a political leader's death Signup and view all the answers

What does 'loss' refer to according to the text?

The total or partial measurable reduction in income or property Signup and view all the answers

In what range is the probability of loss that is considered impossible according to the text?

0 < 𝑝 < 1 Signup and view all the answers

What is the main characteristic of the Risk Retention policy?

Reliance on current income to face the effects of risk Signup and view all the answers

What distinguishes Risk Transfer from other risk management techniques?

Contractual shifting of risk to another party Signup and view all the answers

What is the primary goal of Risk Avoidance?

Preventing loss through activity avoidance Signup and view all the answers

Which policy refers to actions taken to reduce the amount of loss or prevent loss of life, health, and property from an accident?

Loss Prevention Signup and view all the answers

What does Risk Segmentation aim to achieve?

Division of exposure units to minimize risk Signup and view all the answers

Which policy involves the spreading of losses incurred by a few over the entire group?

Pooling of Losses Signup and view all the answers

What distinguishes Loss Prevention from other risk management techniques?

Actions taken to reduce the amount of loss Signup and view all the answers

Which policy involves preventing loss in its entirety by not engaging in risky activities?

Risk Avoidance Signup and view all the answers

What is the primary characteristic of Pooling of Losses?

Spreading losses among a large group Signup and view all the answers

What distinguishes Risk Segmentation from other risk management techniques?