CISR ELEMENTS OF RISK MANAGEMENT EXAM 2023-2024 ACTUAL EXAM 150 QUESTIOS AND CORECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |AGRADE

CISR ELEMENTS OF RISK MANAGEMENT EXAM

2023-2024 ACTUAL EXAM 150 QUESTIOS AND

CORECT DETAILED ANSWERS WITH RATIONALES

(VERIFIED ANSWERS) |AGRADE

An accident with the limitation of time removed; an "accident" extended

over a period of time rather than a single, observable event - ANSWERoccurrence

A condition or characteristic that may create or increase the likelihood or

severity of a loss - ANSWER- hazard

A response to a focus on the frequency with which events occur -

ANSWER- Prevention

The isolation of an exposure from other exposures, perils, or hazards -

ANSWER- Segregation

Creating asset back-ups - ANSWER- Duplication

A response to a focus on the severity of incidents in an effort to

recognize risk and take action to lower losses - ANSWER- Reduction

The shift of function, exposure, or responsibility of certain liabilities to

another party - ANSWER- Transfer

The elimination of risk - ANSWER- Avoidance

The process of spreading exposures or activities over several locations -

ANSWER- Separation

Risk is defined as a condition of either positive or negative ____ arising

from a given set of circumstances - ANSWER- uncertainty

Perceptions of risk depend upon an individual's job function or area of

expertise. - ANSWER- True

A risk manager may define risk as the person or property exposed to a

potential loss - ANSWER- True

Pure risks include threats to property and people, as well as ___ -

ANSWER- Liability

The result of a pure risk is some _____ - ANSWER- Measure of Loss

Unlike pure risk, _____ presents the opportunity for gain - ANSWERSpeculative Risk

Speculative risk is associated with _____ or _____ risk. - ANSWERBusiness, Financial

A situation, practice, or condition that may lead to an insured's

susceptibility to adverse financial consequences or loss is called a(n) -

ANSWER- exposure

A ____ is a cause of loss - ANSWER- peril

A(n) ____ is a factor that increases the likelihood that a peril will occur.

- ANSWER- hazard

A(n) _____ is an event that may lead to a loss or a claim, or an event

that may cause a business interruption - ANSWER- Incident

A(n) _____ is always an unexpected and unintentional event that tends

to result in damage or injury. - ANSWER- Accident

An "accident" that occurs over an extended period of time is called a(n)

_____ - ANSWER- occurrence

The number of claims that occur or that an insurer expects to occur

within a given period of time is labeled _____ - ANSWER- frequency

The dollar amount inflicted by a given loss or catastrophe, or the

aggregate dollar amount of all losses for a given period of time, is

defined by the word _____ - ANSWER- severity