BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Will “gamble” on a big payout and not take many precautions to avoid risk.
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Any situation or circumstance in which a loss is possible, regardless of whether a loss occurs.
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Avoid risk if and when possible.
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Will evaluate risk and will strive to “pay” no more or less than the expected loss to avoid the risk.
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Detailed explanation-1: -Loss Exposure-any situation or circumstance in which a loss is possible, regardless of whether a loss occurs. Pre-Loss Objectives: prepare for potential losses in the most economical way, reduce anxiety, and meet any legal obligations.
Detailed explanation-2: -Since the term risk has several meanings, risk managers often use the term loss exposure to remove any ambiguity as to what is meant. A loss exposure is any situation where a loss is possible, whether loss occurs are not.
Detailed explanation-3: -Property loss exposure: A condition that presents the possibility that a person or an organization will sustain a loss resulting from damage (including destruction, taking, or loss of use) to property in which that person or organization has a financial interest.
Detailed explanation-4: -There are four types of loss exposures that motor carriers must account for: property, liability, personnel, and net income. Below is a summary of each type of loss exposure. A property loss exposure involves the potential damage to property in which a person or organization has a financial interest.
Detailed explanation-5: -Liability Loss Exposures-Liability Pure Risk One is exposed to the possibility of liability loss. (loss caused by a third party who is considered at fault) by having to defend against a lawsuit when he or she has in some way hurt other people.