The Risk Management Process

Dishonesty or character defects that increase frequency or severity of loss

Dividing assets exposed to a loss to minimize the harm from a single event

All major risks faced by a business firm

Having back ups or copies of important documents or data in case a loss occurs

Carelessness or indifference to a loss which increases the frequency or severity of loss

The process of selecting and classifying applicants for insurance

Characteristics of a system, or regulatory environment that increase frequency or severity of losses

Tendency of a person with higher than average risk of loss to seek insurance at a standard rate

Refers to measures to reduce the frequency of a particular loss

Cause of a loss

Fraudulent claims do what to society

The insured is restored or made whole to the same position prior to the loss

Financial loss that results incidentally from a direct physical loss or theft

An insurer owned by a parent, association or group to cover loss exposures

An ideally insurable risk is

Uncertainty concerning the chance of loss

With greater number of exposures, actual results reach probable results

Situation in which either profit or loss is possible

The relative variation of actual loss from expected loss

Covers an Insured's legal liability arising from property damage or bodily injury