20 Questions
What is the direct loss?
Loss that directly affects the asset and its effects appear on it
What is an example of an indirect loss?
Cost of workers’ wages during the period of restoring the factory
What is a peril in terms of risk hazards?
Anything that either causes or increases the likelihood of a loss
Which classification of hazard includes natural factors that humans have no effect in their existence or occurrence?
Natural hazards
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
What is the probability range for the occurrence of loss according to the text?
0 < 𝑝 < 1
How does the text define 'accident' in the context of risk?
The physical verification of risk hazards resulting in financial loss
What does 'moral loss' refer to based on the text?
The pain caused by a political leader's death
What does 'loss' refer to according to the text?
The total or partial measurable reduction in income or property
In what range is the probability of loss that is considered impossible according to the text?
0 < 𝑝 < 1
What is the main characteristic of the Risk Retention policy?
Reliance on current income to face the effects of risk
What distinguishes Risk Transfer from other risk management techniques?
Contractual shifting of risk to another party
What is the primary goal of Risk Avoidance?
Preventing loss through activity avoidance
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
What does Risk Segmentation aim to achieve?
Division of exposure units to minimize risk
Which policy involves the spreading of losses incurred by a few over the entire group?
Pooling of Losses
What distinguishes Loss Prevention from other risk management techniques?
Actions taken to reduce the amount of loss
Which policy involves preventing loss in its entirety by not engaging in risky activities?
Risk Avoidance
What is the primary characteristic of Pooling of Losses?
Spreading losses among a large group
What distinguishes Risk Segmentation from other risk management techniques?
Division of exposure units to minimize risk
This quiz explores the concept of risk and its elements, including the probability of loss, loss itself, and accidents. Learn about how these elements contribute to the state of doubt and uncertainty in decision making.
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