Blog

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?

The Hungry Grocer is a grocery store located in Tampa, FL. One random Saturday, a customer accidently drops a gallon of water in aisle 5; but because he was in a hurry simply left the store without telling anyone. A few moments later, an unsuspecting customer (Professor Schwartz) was quickly walking down aisle 5, where he slipped on the spilled water and fell awkwardly injuring his back. He now will be unable to teach his RMI 3004 class for a few weeks while he recovers (which his students are devastated about…)  The risk of Prof. Schwartz slipping on the spilled water at the Hungry Grocer is an example of a Hazard Risk. Which of the following answers best describes why? 

Billy works for Big Construction Company as a highway construction worker. Over the weekend on his days off from work, Billy went hang-gliding. Unfortunately, during his adventure, he accidently crashed into a tree was as severely injured. He was sent to hospital and treated for his injuries. The cost of putting casts on both of his arms and both of his legs was quite substantial = $50,000. Additionally, Billy will now not be able to work his construction job for at least 3 months while he recovers from his injuries.  The hang-gliding accident itself is an example of which of the elements of an exposure? 

Below is a Risk Register that was completed by the Risk Manager of Playful Pine – a manufacturer of small wooden toys based in San Francisco, CA.   What Quadrant of Risk does Risk #4 fall under? = [risk1]   Which is the correct Risk Map for the Risk Register provided above for Bubba Burger Inc? = [riskmap] Risk Map #1:  Risk Map #2: Risk Map #3: Risk Map #4:

During the past year, International Toys has undertaken four capital projects: Renovated and refurbished one of its aging warehouse buildings; which was sitting vacant until the basic repairs were completed where it could be used again Purchased the most recent version of its current order processing computer software. The version the firm was using was 5 years old, and the vendor no longer offered product support for it Purchased new machinery that will allow the firm to launch a new line of toy products based on consumer demand Installed a security system, to monitor the premises after hours for potential property damage (fire, water damage, vandalism and theft)  Which one of the following company projects presents speculative risk?

Consider a scenario where the probability of Loss A is equal to 100% and the probability of Loss B is equal to 50%. Which scenario faces more risk?

Grambling Golf is a manufacturer of high quality golf equipment. The Risk Manager for Grambling is concerned about loss of business related to product design. Failing to respond to changing customer demand and preferences in the design of golf clubs could cost Grambling significant market share to its fierce competition in the industry. According to the quadrants of risk, this exposure raised by the Risk Manager is an example of:

Using a very simple definition: what does standard deviation measure in relation to expected value?

Adam works for Florida Power and Light as an electrical line technician. Over the weekend on his days off from work, Billy went surfing. Unfortunately, during his shredding, he accidently crashed into a coral reef and was as severely injured. He was sent to hospital and treated for his injuries. The cost of putting casts on his right arm and right leg was quite substantial = $50,000. Additionally, Adam will now not be able to work his electrician job for at least 3 months while he recovers from his injuries.  Adam missing work due to his surfing accident for 3 months, and in turn not getting paid for 3 months, is an example of what type of risk?