Rmin 4000 Exam 1 Brown 2024 With 100% Correct Answers

Techniques for managing risks {Ans: Risk control Risk financing}Examples of a Legal Hazard {Ans: Juries in some areas are more sympathetic than in other areas Georgia now requiring Diminution in Value to be paid on property losses}Examples of Morale Hazard {Ans: Leaving car keys in an unlocked car Neglecting a tree limb growing over your roof}Losses must be __________? {Ans: Quantifiable}Risk financing - non insurance transfer {Ans: Methods other than insurance by which a pure risk and its potential financial consequences are transferred to another party. Ex - contracts, leases, hold harmless agreements}Risk control - Diversification {Ans: Reducing the chance of loss by spreading the loss exposure across different parties (customers, suppliers), securities (stocks, bonds), or transactions.}