Risk Management

It refers to an insurer that is licensed to operate in a specific state. The insurance company is admitted by and formed under the laws of that state in which insurance is written.

Domestic Insurer

Risk = _____ of uncertainty on objectives.

Effect

Risk Management activities need to be ___________ within the organization.

Embedded

An _____________ _______ is a physical factor within the environment that harms the musculoskeletal system.

Ergonomic Hazard

It defines the scope for the risk management process and sets the criteria against which the risk and assessed.

Establishing the context

It refers to a source of danger which can be defined as " a condition or situation that exists in the work environment that could result in physical harm, injury and/or damage

Hazard

What are the categories of Risk?

Hazard, Control, and Opportunity

These financial risks might be in the form of ____ ________,______ __ _______ ____, ________, _______, etc.

High inflation, volatility in capital markets, recession, bankruptcy

It refers to the guidance on selecting and applying systematic techniques for risk management.

ISO 31010:2009 on Risk management - Risk assessment Techniques

It provide definitions for commonly used terminology in risk management and risk assessment.

ISO guide 73:2009 on Risk management - Vocabulary

It often defined as the consequences, or effects of a risk event on the project objectives.

Impact

It refers to a legal contract that transfers risk from a policyholder to a insurance provider.

Insurance

It refers to a person who sells, negotiates, or promotes financial products on behalf of their employers organization.

Insurance Agent

It is interested in selling, buying or negotiating various financial products best suited to their individuals client's needs for compensation.

Insurance Broker

It refers to the government overseeing the insurance market to ensure fairness and professionalism among those working for the insurance industry, to prevent the market from collapsing, and to democratize insurance.

Insurance Regulation

It refers to a broad summary of the policy's coverage

Insuring Agreement

ISO stand for?

International Organization for Standardization

It refers to an insurance and reinsurance market based in London. It is not an insurance company, instead, it is a marketplace where insurance buyers and sellers come together. It essentially acts as a market regulator which sets rules under which its members operate.

Lloyds of London

It seeks to ensure the fair treatment of policyholders, to prevent discrimination and dubious claim practices, and to regulate advertising and other marketing, underwriting, claims payment, rates charged, and insurance policies.

Market Regulations

What are the different types of Risk?

Market, Legal, environmental, regulatory risk

Insurance is regulated by the states. This system of regulation stems from the _______________________, which describes state regulation and taxation of the industry as being in "the public interest" and clearly gives it preeminence over federal law.

McCarran-Ferguson Act of 1945

It can be companies or individuals, operate as syndicates, specializing in different types of risks.

Members

It refers to is a privately-held insurance company that is 100% owned by its policyholders.

Mutual Insurance Company

__________ _________ seeks to make positive outcomes more likely and more substantial. As part of the opportunity management approach, the organization should also look at possibilities for increasing the revenue from the product or service.

Opportunity Management

It refers to the risks that are (usually) deliberately sought by the organization. These risks arise because the organization is seeking to enhance the achievement of the mission, although they might inhibit the organization if the outcome is adverse. This is the most important type of risk for the future long-term success of any organization.

Opportunity Risks

_______ _______ can be any factors within the environment that can harm the body without necessarily touching it.

Physical Hazards

Four components in week 8.

Plan, Implement, Measure, and Learn

It is the money you pay to the insurance company to avail of insurance policy benefits.

Premium

Under this principle, the insured can claim the compensation only to the extent of actual loss either from any one insurer or all the insurers.

Principle of Contribution

Indemnity is a guarantee to restore the insured to the position he or she was in before the uncertain incident that cause a loss for the insured. The insurer (provider) compensates the insured (policyholder). What principle of insurance is that?

Principle of Indemnity

What principle of insurance is this? Insurance Interest just means that the subject matter of the contract must provide some financial gain by existing for the insured (or policyholder) and would lead to financial loss if damaged, destroyed, stolen, or lost.

Principle of Insurable Interest

The purpose of risk management is the creation and protection of value. It improves performance, encourages innovation and supports the achievement of objectives.

Principles

What are the Principles of Insurance

Principles of Utmost Good Faith Principle of Insurable Interest Principle of Indemnity Principle of Contribution Principle of Subrogation Principle of Loss minimization Principle of Causa Proxima

A risk is an event that "may" occur.

Probability

What are the two primary dimension of risks?

Probability and Impact

It is involves the systematic application of policies, procedures and practices to the activities of communicating and consulting, establishing the context and assessing, treating, monitoring, reviewing, recording and reporting risk.

Process

____________ to the level of risk within the organization;

Proportionate

PACED stand for?

Proportionate, Aligned, Comprehensive, Embedded, and Dynamic.

___________ ______ is concerned with how the actual loss or damage happened to the insured party and whether it resulted from an insured peril. It looks for the reason behind the loss; it is an insured peril or not.

Proximate cause

It refers to the elements of the work environment, organizational practices and personal stresses that pose a risk to mental health and well -being on the job site.

Psychological Hazard

It refers to a key driver in increasing organizational efficiency and offers significant business benefits.

Records management

It can defined as the chance of loss or an unfavorable outcome associated with an action.

Risk

____ = the possibility of financial loss

Risk

It defines roles, responsibilities, communication and risk reporting structure.

Risk Architecture

What are the risk management process in the week 8?

Risk Architecture, Risk Protocols, and Risk Strategy

What are the four categories of Risk Treatment?

Risk Avoidance, Acceptance Risk, Reduce Risk, and Risk Transfer.

What are the 4 risk management strategies to ensure project success?

Risk Avoidance, Risk Reduction, Risk transferring, and Risk acceptance

____ _______ is a step in the hazard management process. It involves finding a way to neutralize or reduce an identified risk.

Risk Control

In this stage risk need to be ranked and prioritized from most severe to lowest level of risk.

Risk Evaluation

In risk management process from ISO 31000, what are the risk assessment?

Risk Identification, Risk Analysis, and Risk evaluation

It involves developing a range of options for mitigating the risk, assessing those options, and then preparing and implementing action plans.

Risk Treatment

It refers to the process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Risk management

What are the components of the standard?

Risk management process, risk management framework and principles

These are the most common and will be present in most workplaces at one time or another. They include unsafe conditions that can cause injury, illness, and death.

Safety Hazards

Certain events like medical emergencies can have a significant impact on your cash flow management. Insurance ensures you don't have to pay out of pocket for such situations.

Safety of Financial Status

It seeks to ensure that the solvency of insurers is maintained and to remedy the effects of an insolvency when it does occur.

Solvency Regulations

It is an insurance company that has stockholders as owners, instead of policyholders. These shareholders make a profit from dividends, or from the increase of the stock price over time. However, they may also sustain losses if the stock value goes down.

Stock Insurance Company

It is the amount the life insurance company pays to the nominee if the insured event happens (death of insured).

Sum Assured

It is applicable for a non-life insurance policy like home and health insurance. It refers to the maximum cap on the costs you are covered for in a year against any unfortunate event.

Sum Insured

True or False - AS/NZS ISO 31000:2009 has a set of definitions, terms and principles to help guide and inform effective risk management.

True

True or False - Any failure at this stage to identify risk may cause a major loss for the organization. Risk identification provides the foundation of risk management.

True

True or False - Asbestos, lead, silica, and cadmium are examples of Chemical hazards

True

True or False - Insurance protects people and businesses against the risks associated with everyday life. It provides financial compensation to help the insured, whether a person or a business, recover from a loss.

True

True or False - One of the benefits of Risk management is to creates a safe and secure work environment for all staff and customers.

True

True or False - Poor posture, Awkward Movement, Vibration, and Lifting Movement are examples of Ergonomic Hazards.

True

True or False - Sexual Harassment, Stress, Violence, and Overwork are examples of Psychological Hazards.

True

True or False -Bone fragments and Feathers from animal carcass are examples of Physical Hazards.

True

It refer to a precondition to risk.

Uncertainty

Insurance policies like ULIPs give you investment opportunities and help you fulfil your essential financial goals.

Wealth Creation Goals

The _____________ ______ is generally the first page or two of your policy. It is basically a snapshot of your coverage, and you can find the answers to most of your basic coverage questions in it.

declarations page

However, the _________ _____________ has often intruded, passed laws, and set up minimum standards for every insurance company to follow no matter in which state it is located. This is because of the number of bankruptcies in the past that the states were unable to prevent.

federal government

Both parties must have _____ __________ the to enter a legally enforceable contract. Neither party can be under the influence of alcohol or drugs, mentally impaired, or a minor under eighteen.

legal capacity

Example of internal context.

organization's governance, culture, standards and rules, capabilities, existing contracts, worker expectations, information systems, and etc.

Example of external context

regulatory environment, market conditions, stakeholder expectations

It requires knowledge of the organization, the market in which it operates, the legal, social, economic, political, and climatic environment in which it does its business.

risk identification

The first Australian and New Zealand Risk Management Strategy was released in ____, and updated in 1999, and 2004 respectively.

1995

It is International standard providing principles and guidelines on effective risk management.

AS/NZS ISO 31000:2009

In order to be fully effective, the risk management approach must be _____________

Comprehensive

It explains your responsibilities as the insured.

Condition section

It is the exchange of items of value, whether money, services, or goods. In an insurance agreement, the insured pays a premium while the insurer promises a payout in the event of an insurance claim.

Consideration

There are other risks that give rise to uncertainty about the outcome of a situation. These can be described as _______ ______ and are frequently associated with project management.

Control Risks

________ ________ reduces the range of possible outcomes from an event. Control management is based on the established techniques of internal financial control, as practiced by internal auditors.

Control management

A ________________ in an insurance policy protects the policyholder when the asset gets damaged for no fault of his own. Thus, the insurer can pursue the person behind the damages to pay for them.

subrogation

What are the five key players in Lloyds of London?

syndicates, insurance buyers, brokers, managing agents and coverholders.

Risk is ___________ and every organization needs to take action to manage it in a way that it can justify to a level that is acceptable.

unavoidable

It is defined by US Insurance Information Institute as: "an insurance company incorporated under the laws of a foreign country, as opposed to a 'foreign' insurance company which does business in states outside its own."

Alien Insurance Company

Types of Hazard are organisms, or substances produced by organisms, that pose a threat to human health.

Biological Hazard

Dynamic, iterative and responsive to _______

Change

It refers to any substance that can cause a health problem when ingested or inhaled.

Chemical Hazard

The extent to which the recipient is subjected or exposed to a hazard

Exposure

True or False - This is intended for the purpose of certification.

False - Not intended

True or False - This standard can not be used by any public, private, or community enterprise, association, group, or individual.

False - can be used

They provide cover against life's uncertainties and protect you against losses a rising from different unexpected events in life.

Financial Safety for family

The purpose of this component is to assist the organization in integrating risk management into significant activities and functions. The effectiveness of risk management will depend on its integration into the governance of the organization, including decision-making.

Framework