1.An insurance policy specifically written and designed to meet the needs of an insurance purchaser is called a___________

2.__________ refers to the probable size of losses that may occur.

3.The post-loss objective of_________ is to minimize the effects that a loss will have on other persons and on society.

4.A written record stating the business entity's risk management objectives and philosophy with respect to the treatment of loss exposures is called a ___________

5.An entity's___________ depends fundamentally on the expected magnitude, timing and risk associated with the future net cash flows available for its shareholders to provide them with a return on their investment.

6.A written document containing some details about the business entity's risk management program, its objectives, available techniques, and the responsibilities of the risk manager and other parties involved in the program is called a___________

7.The ___________level of safety expenditure is achieved when MB = MC.

8.___________ is the worst loss that is the most likely to happen to a business entity.

9.The reduced volume of activities when practising increased pre-caution is an example of the cost of ________

10.A higher interest rate imposed by bank in extending yet another loan facility is an example of the cost of__________

11.When two risks are perfectly and negatively correlated, the combination of these risks provides a____________

12.Loss of sales is a___________ and an outflow in cost benefit analysis.

13.__________is a (comprehensive / holistic) process of managing all the major risks faced by a business entity with a single unified treatment program

14.___________ is an uncertain situation that affects a business entity because of adverse changes in commodity price, interest rate, currency exchange rate and the value of money.

15.The opportunity cost of putting aside money to pay for losses is an example of the cost of__________

16.The foremost important pre-loss objective is achieving___________

17.To lower the wastage cost of defective product (a decrease in the expected cost of_________ direct loss), a supervisor is employed to monitor the performance of operators (an increase in the cost of loss control)

18.__________ the implementation of risk management when its cost is greater than its benefit.

19.__________means a decrease in one component of cost usually is associated with an increase in another component of cost.

20.______________ risk reporting is a process to prepare reports to serve the different needs of various stakeholders outside of the business entity.

21._________is a person who is responsible for the treatment of pure and speculative risks faced by a business entity.

22.The ultimate goal of a business entity is to maximise the____________ of the shareholders.

23._________ refers to the probable number of losses that may occur during a given time period.

24._________ is the worst loss that could happen to a business entity during its lifetime.

25.__________ analysis takes into account the time value of money (TVM) of benefits and costs in deriving net present value.

26.A reduction in expected loss is a___________ and an inflow in cost benefit analysis.

27.An employer providing self-insured health plan will purchase____________- to pay for the medical costs above a certain limit

28.In a__________ market, the profitability of insurance industry is improving. Insurance companies will loosen their underwriting standards. It is easy to obtain insurance and premium is inexpensive. As such, the risk manager may decide to retain less of a given loss exposure and increase the amount of insurance purchased.

29.___________ is an amount subtracted from the loss payment otherwise payable to the policyholder.

30.A ______________ provides for the payment only if two specified losses occur.