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Jerry is a recent graduate from the University of South Florida, where he double majored in Risk Management and Insurance & Entrepreneurship. Jerry is completing the Risk Management Process for his new business. Which step in the risk management process should Jerry be most concerned with?

Which one of the following statements is true regarding the basic measures that apply to risk management?

Several years ago, Jeff Bezos announced that he would be retiring as the CEO of Amazon. As a result of Bezo’s sudden announcement: 1) There was a delay in releasing several new Amazon products (which were expected to generate significant revenues for the company) becauseexecutive approvals could not be made 2) Amazon has now started a costly search process for an adequate replacement for such an important position (CEO) of the company   What type of risk does this pose for the corporation Amazon? 

Due to the rising price of a barrel of oil based on the Global Crude Oil Index (GCX), Speedway Stores must increase the price of a gallon of gasoline by 10% at all of its gas stations across the country. According to the quadrants of risk, what type of risk does this represent for Speedway Stores?

Shelia works in the Accounting department of Snap-On Tool Inc. Many of Snap-On Tool’s customers are large construction contractors, that purchase large amounts of tools at a time to complete major projects. Shelia has noticed that many of these customers have purchased very large tool orders on 90 day payment plans, so the Accounts Receivable balance for Snap-On is quite substantial.  What risk does this Account Receivables balance pose to Snap-On Tools? 

Risk manager Christine is analyzing the risks faced by her company, Clear Sky Technology. After quickly identifying the key risks that she believes poses the most significant threat to Clear Sky; she then assigned a rating based on the likelihood and consequences of the various risks. The four ranges of rating she used are: Low, Medium-Low, Medium-High, and High.  The process that Christine engaged in above is most closely aligned to what ?

All of us face Personal Risks in our lives = the risk of unemployment, injury, illness, and unfortunately death. The personal risks that we face exposes our biggest and most important asset to the threat of loss.  What is the biggest asset that we all have, and that is exposed to Personal Risk? 

Murray Trucking is interested in evaluating which risk factors are most likely to lead to the most costly accidents for its truck drivers. The company wants to collect data on driving risk factors such as speed, distance traveled, and rapid acceleration / braking. Which one of the following risk identification methods would be useful for collecting the data that the Risk Manager is seeking? 

Katrina’s Cookies is a local bakery that specializes in a wide variety of cookies. Several types of Katrina’s cookies contain peanuts. Being a prudent Risk Manager, on the types of cookies that contain peanuts, she has a label that reads in large bold font “allergen warning: product contains peanuts.”  Which objective of risk management is Katrina achieving in the above situation? 

When completing a Risk Register, which of the following factors is typically considered when a Risk Manager is prioritizing all of the risks he/she has identified?