BUISENESS MANAGEMENT
RISK MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Defined as the uncertainty based on a person’s mental condition or state of mind, varies by individual.
|
|
|
Cause of peril, a condition that creates or increase the frequency of severity of loss.
|
|
|
Defined as the probability that an event will occur.
|
|
|
Defined as the cause of the loss.
|
Detailed explanation-1: -Subjective risk-is defined as uncertainty based on a person’s mental condition or state of mind. For example, an individual is drinking heavily in a bar and attempts to derive home. The driver may be uncertain whether he or she will arrive home safely without being arrested by the police for drunk driving.
Detailed explanation-2: -Objective risk is the relative variation of actual loss from expected loss, while subjective risk is the uncertainty based on a person’s mental condition or state of mind (Rejda and McNamara 2021).
Detailed explanation-3: -This relative variation of actual loss from expected loss is known as objective risk. Subjective risk – is defined as uncertainty based on a person’s men talk condition or state of mind.
Detailed explanation-4: -The objective risk is the relative variation of actual loss from expected loss. As the number of exposure units under observation increases, objective risk declines. The subjective risk is uncertainty based on one’s mental condition or state of mind.
Detailed explanation-5: -Subjective risk is what an individual perceives to be a possible unwanted event. Most people realize, for instance, that it’s possible for them to have an accident, or a heart attack or some other health problem. Or that they will lose money buying lottery tickets.