Chapter 33: The Basics of Risk Management

Hazard

________ is anything that increases the likelihood of loss through peril.

Business owners

________ reduce risk by designing work areas to lower the chances of accidents or fire.

financial responsibility

Bearing ________ for the consequences of loss is called risk retention.

risk

While ________ is the chance of loss or injury, peril is anything that may possibly cause a loss.

insurance protection

With ________, no one person or business has to bear a loss alone.

hazardous activity

For a business, risk avoidance means refusing to engage in a particularly ________.

consequences of decisions

Avoiding risk involves thinking about the ________.

possibility of loss

A risk is the ________ or injury.

Insurance

________ provides a way to transfer a risk of loss to a(n) ________ company.

Uninsurable risk

________ is a risk that is unacceptable to insurance carriers because the likeli- hood of loss is too high.

Liability insurance

Conversely, ________ covers damages that you may have caused accidentally to someone else or to someones property.

Health insurance

________ provides money to pay medical bills in case of accident or sickness.

insurance protection

A premium is the price an insured person or business pays for ________ for a specified period of time.

Insurance

________ is paid protection against loss due to injury or property damage.

Uninsurable risk is a risk that is unacceptable to insurance carriers because the likeli

hood of loss is too high

A pure risk is the threat of a loss with no oppor

tunity for gain

It can be placed in three categories

personal risk, property risk, and liability risk

Over the past decade, computer

related crime has emerged as a significant new human risk to business