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Question: omcourses10465quizzes62362take the risk management process occurs independently within an organization...

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om/courses/10465/quizzes/62362/take The risk management process occurs independently within an organization because it operates without restriction True False D Question 14 5 pts The cost of risk measures costs associated with treating the organizations loss exposures and it includes insurance premiums, loss control expenditures, taxes and fees and other expenses related to the risk management program True O False D | Question 15 5 pts When commercial insurance is used to finance risk, the retention level of the organization is usually reflected in what provision in the policy?
5 pts y of loss exposures. Match the to
1. All of the following are advantages of financing risk through the purchase of commercial insurance except which one? A It minimizes the fluctuation of earnings for the organization allowing operations to continue Insurance premiums are tax deductible C It eliminates the need for other risk control techniques D It reduces worry and fear which potentially increases productivity 2. An organization can transfer certain risks to another entity by contract. TRUE FALSE 3. Insurance is appropriate for loss exposures that have a low probability of loss but the severity of loss is high TRUE FALSE 4. Risk retention can be active but not passive. TRUE FALSE 5. Retention level is the dollar amount of losses that the firm will retain when using retention as a method of financing loss. TRUE FALSE 3
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