BUISENESS MANAGEMENT
RISK MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Possibilities of both loss or profit.
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Cause of peril, a condition that creates or increase the frequency of severity of loss.
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Only the possibilities of loss or no loss.
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A risk that affects only individuals or small groups and not entire economy
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Detailed explanation-1: -A hazard is a condition that increases the possibility of loss. For instance, fire is a peril because it causes losses, while a fireplace is a hazard because it increases the probability of loss from fire. Some things can be both a peril and a hazard.
Detailed explanation-2: -A peril is a potential event or factor that can cause a loss, such as the possibility of a fire that could engulf a house. A hazard is a factor or activity that may cause or exacerbate a loss, such as a can of gasoline left outside the house door or a failure to regularly have the brakes of a car checked.
Detailed explanation-3: -A hazard is a condition that creates or increases the frequency or severity of loss.
Detailed explanation-4: -A peril is the direct cause of a loss, or the source of the loss. For example, if your house is damaged by a lightning strike, the lightning strike is considered to be the peril. If your house catches on fire, then fire will likely be considered the peril.
Detailed explanation-5: -Hazards may increase the probability of losses, their frequency, their severity, or both. That is, frequency. refers to the number of losses during a specified period.