click below
click below
Normal Size Small Size show me how
Risk Management
Unit 1
Question | Answer |
---|---|
Bounced Check | check that is returned to a business by the bank because the customers checking account has insufficient funds to cover the check amount |
Consumer Credit | offered when a retail business allows its customers to buy merchandise now and pay for it later |
Controllable risk | risk that can be reduced or possibly even avoided by actions the insurer takes |
FECA | law that provides benefits to employees who have suffered work-related injuries or occupational diseases; benefits include payment of medical expenses, compensation for lost wages, and payment of benefits to dependents of |
Insurable risks | risks in which the amount of loss can be predicted |
Insurance | a payment made to an insurance company to cover the cost of uncontrollable events |
Premium | payment that is made to an insurance company to cover the cost of insurance; price paid to cover a specified risk for a specific period of time |
Pure risk | insurable risk that is faced by a large number of people and the amount of the loss can be predicted; presents the chance of loss but no opportunity for gain |
Risk assessment | involves looking at all aspects of a business and determining the risks it faces |
Risk management | involves taking action to prevent or reduce the possibility of loss to a business |
Shoplifting | act of knowingly taking items from a business without paying |
Speculative risk | risk which offers the insured chance to gain as well as lose from the event or activity |
Trade credit | offered when one business allows another business to buy now and pay later |
Uncontrollable risk | risk on which actions have no effect, such as the weather |
Workers compensation | a government-regulated program that provides medical, income, and training benefits to employees who are injured on the job |