Term
| Improperly Underwritten Mortgages |
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Definition
| What lay at the heart of the global credit crisis? |
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Definition
| What would be the goal of a decision maker in terms of risk? (Goal of risk management.) |
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| Evaluated for appropriateness. |
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Definition
| When employing risk metrics, you must remember that each risk model utilized must be: |
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Term
| Measurable and Quantifiable |
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Definition
| Measurements used in risk metrics outcomes are characterized as which of the following? |
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Definition
| Economic theory where people rank order choices based on preference. A positive theory. |
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Term
| Utility Theory Assumptions |
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Definition
1. Completeness
2. Monotonicity Assumption (More is better)
3. Mix-is-Better Assumption
4. Rationality |
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Definition
| Dictates that people should behave in a manner prescribed by it. |
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Definition
| A visual tool to consider alternatives of risk management. |
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Definition
| Retaining risks within the firm. |
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Definition
| Executive officer responsible for all risk elements in the organization. |
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Definition
| Value created by a company with good products and reputation. |
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Definition
| A device to transfer risk to a third party. |
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Definition
| financial methods that can be construed as financing risk assumptions. |
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Definition
| To them, money is money. They don’t pay for insurance, nor will they gamble |
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Definition
| Accidental or unexpected risk. |
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| Term to describe the enterprise, property, person, or activity facing a potential loss. |
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Term
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Definition
| Those of us who make financial decisions chose certain objectives based on our _______________. |
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Definition
| Likelihood an even will occur. |
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Term
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Definition
| Outcomes can impact any kind of plane. |
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Term
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Definition
| Persons, preferences and choices we make has a basis on individual preference. |
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Term
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Definition
| A visual tool with which we can make decisions |
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Term
| Three Ways To Finance Risk |
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Definition
| Self Insure is one of these. |
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Term
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Definition
| Charts and spectrum of risk. |
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Term
| Public Firm's Market Value |
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Definition
| Shares Outstanding X Value of Shares |
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Definition
| To maintain a certain process or state of risk. |
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Term
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Definition
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Term
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Definition
| What does Risk Management ultimately do for a firm? |
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Term
| Enterprise Risk Management |
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Definition
| The method, framework, and processes to managing risks by taking an integrated view and holistic view of the various uncertainties involved across the organization. It is the process whereby an organization optimizes the manner in which it controls risks. |
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Term
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Definition
| As a sample of observations increases in size, the relative variation about the mean declines. |
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Term
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Definition
| Bundling together of premiums. |
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Term
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Definition
| The tendency of higher risk persons or groups to seek coverage more than less risky persons or groups. |
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Term
| Factors that would make risk suitable to carry. |
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Definition
| cost of coverage is economic, number of exposures is small, catastrophe may occur, probability distribution may be determined, losses definite |
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