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11 Cards in this Set
- Front
- Back
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Concepts Risk Management Risk |
The chance or uncertainty of loss |
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Concepts Risk Management Exposure |
A condition or situation that presents a possibility of loss |
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Concepts Risk Management Hazard |
Something that increases the chance of loss |
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Concepts Risk Management Peril |
The cause of loss |
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Concepts Risk Management Loss |
The injury or damage sustained by the insured in consequence of the happening of one or more of the accidents or misfortunes against which the insurer in consideration of the premium has undertaken to indemnify the insured |
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Concepts Methods of Handling Risk |
Avoidance Retention Sharing Reduction Transfer |
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Concepts Methods of Handling Risk Avoidance |
The elimination of hazards, activities, and exposures that can negatively affect assets |
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Concepts Methods of Handling Risk Retention |
All risks that are not avoided or transferred are retained by default People choose to pay for loss themselves if it occurs |
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Concepts Methods of Handling Risk Sharing |
A self-insurance method of managing or reducing exposure to risk by spreading the burdern of loss among several units |
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Concepts Methods of Handling Risk Reduction |
Reducing the severity of the loss or the likelihood of the loss from occurring |
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Concepts Methods of Handling Risk Transfer |
Risk management strategy in which an insurable risk is shifted to another party (the insurer) by means of an insurance policy |
