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Definition
| the individual's personal estimate of the Chance of Loss |
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Definition
| a physical condition that increases the frequency or severity of loss |
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Definition
| a situation in which either Profit or Loss is possible |
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Definition
| the present value of the family's share of the deceased breadwinner's future earnings |
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Term
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Definition
| when an individual or business keeps part of all of the losses |
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Term
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Definition
| as the number of exposure units increases, the more closely the actual loss experience will approach the expected loss experience |
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Definition
| techniques that provide for the funding of losses |
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Definition
| a financial loss resulting from the physical damage, destruction, or theft of property |
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Definition
| risk that affects only individuals or small groups... Not the entire economy |
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Definition
| transferring risk to an insurance carrier |
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Term
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Definition
| any situation or circumstance in which a loss is possible.. Regardless is the loss actually occurs |
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Definition
| the actual cause of the loss |
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Term
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Definition
| characteristics of the legal system or regulatory environment that increase the frequency or severity of losses |
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Term
| Enterprise Risk Management |
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Definition
| a single program addressing all significant risk faced by a firm |
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Term
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Definition
| a form of planned retention where part of all of a given loss exposure is retained by the individual/firm |
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Term
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Definition
| uncertainty based on a person's mental condition or state of mind |
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Definition
| a technique of managing risk where an exposure is Refused, Abandoned, or Ignored. |
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Term
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Definition
| a financial loss that is a Consequence of the occurrence of a direct loss |
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Definition
encompasses All Major Risks faced by a business firm. This includes:
-Pure Risks
-Speculative Risks
-Strategic Risks
-Operational Risks
-Financial Risks |
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Term
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Definition
| risk that Directly affects an individual or family |
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Term
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Definition
| Uncertainty concerning the occurrence of loss |
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Term
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Definition
| a Condition that Creates or Increases the frequency or severity of a loss |
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Term
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Definition
A situation where there are only the possibilities of loss or no loss at all
-a loss it happens, or it doesn't happen |
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Term
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Definition
| moving risk to an entity other than an insurance company |
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Term
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Definition
| the loss of a family head with Unfulfilled Financial Obligations |
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Term
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Definition
| the Probability that an event will occur |
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Definition
| aims to reduce the probability of loss so that frequency is reduced |
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Term
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Definition
| the risk of being held liable for someone's bodily injury or damage to their property |
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Term
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Definition
| systematic risk that affects the entire economy or large numbers of people or groups within the economy |
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Definition
| a method of protecting personal assets by transferring risk to a legal entity |
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Term
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Definition
| the relative variation of actual loss form expected loss |
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Term
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Definition
| dishonesty or character defects in an individual that increase the frequency or severity of loss |
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Term
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Definition
| a carelessness or indifference to a loss, which increases the frequency or severity of a loss |
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Definition
| that part of a contract where liability for a loss is transferred |
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Term
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Definition
| the risk of having property damaged or lost due to a peril |
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Term
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Definition
| the long-run relative frequency of an event based on the Assumptions of an Infinite Number of Observations with no change in the underlying conditions |
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Term
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Definition
| aims to Reduce the Severity of a loss, once it does occur |
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Term
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Definition
| Techniques that Reduce the frequency or severity of loss |
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Term
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Definition
| refers to the Uncertainty of loss because of Adverse changes in Commodity Prices, Interest Rates, Foreign Exchange Rates, and the Value of Money |
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Term
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Definition
| transfers the Risk of unfavorable Price fluctuations by using the Market to Purchase/Sell Futures Contracts |
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