11: Loss severity is defined as the a. probable number of the losses which may occur during some period. b. Probability that any particular piece of property may be totally destroyed. c. Probability that a liability judgment may exceed a firm's net worth. d. Probable size of the losses which may occur during some period. e. The likelihood that a loss could occur.

: Question 12 Under ISO 31000; all of the followings are included in the risk management process, except: a. Communication and consultation. b. Leadership and commitment. c. Recording and repoting. d. Risk treatment. e. Risk assessment.

Question 13 A computerized database that permits the risk manager to store, update, and analyze risk management data is called: a. Risk management intranet. b. Predictive analytics. c. Value at risk. d. Risk management information system. e. Enterprise risk management

Question 14 A method of characterizing the relationship between two or more variables and then using the characterization to make a prediction is called a. Loss distribution. b. Regression analysis c. Probability analysis. d. Past loss trends. e. Time value of money analysis.

Question 15 Risk management Intranets are networks intended for an internal audience, and Risk management information systems can be used to store and track workers compensation claims data. True False

Question 16 Nour was just named Risk Manager of ABC Company. She has decided to create a risk management program which considers all of the risks faced by ABC-pure, speculative, operational, and strategic-in a single risk management program. Such a program is called a(n) a. Fundamental risk management. b. Contingency risk management. c. Continuity risk management. d. Financial risk management. e. Enterprise risk management.

Question 17 The amount of risk that the company is prepared to take to achieve its objectives is called: a. Risk appetite. b. Risk capacity. c. Residual risk. d. Risk tolerance. e. Inherent risk.

Question 18 Premiums are high when the insurance market is "hard" and underwriting standards are tight when the insurance market is "soft." True False

Question 19 A phrase that encompasses all of the major risks faced by a business firm is a. Pure risk. b. All of mentioned. c. Speculative risk. d. Financial risk. e. None of mentioned.

Question 20 Faking an accident to collect insurance proceeds is an example of a a. Legal hazard. b. Moral hazard. c. Peril. d. Attitudinal hazard. e. Speculative risk.