ms/d/e/1FAIpQLSCM_aRn_kC11921xc8suirSOMG3_yOrmWrR7b3RN1F-yGDsig/formResponse (1) Active risk retention means that the firm is aware of the loss exposure and plans to retain a part or all of it

ms/d/e/1FAIpQLSCM_aRn_kC11921xc8suirSOMG3_yOrmWrR7b3RN1F-yGDsig/formResponse (1) Active risk retention means that the firm is aware of the loss exposure and plans to retain a part or all of it. (11) Passive retention, however, is the failure to identify a loss exposure, failure to act. Which of the above statement is not correct. O a. (l) and (11) O b. Only (11) c. Only (1) O d. None of the above In the context of ERM, which of the following is an example of hazard risk? O a. Human resourse lossess. O b. Property losses c. Liability losses d. Supply chain interruption losses

ms/d/e/1FAIpQLSM aRn_kC11921xcesuirSOMG3 yOrmWR753RN1F-yGDs/g/formResponse Which of the following is not an example of a direct loss resulting from a fire at Bubba's Bar-BQ, a Southern-style restaurant? a. $6,000 of smoke damage to the furniture and furnishings in the restaurant b. $18,000 in fire damage to the kitchen of the restaurant c. $30,000 in lost revenues resulting from a 45-day closure of the restaurant d. $3,000 in damaged electrical wiring caused by water used to fight the fire e. All of the above are direct losses from the fire, Which of the following statements about risk pooling is correct? L. By joining an insurance risk pool, the insured becomes financially responsible for the mean loss of the pool instead of his or her own personal risk exposure. II. By joining an insurance risk pool, the insured can decrease the expected loss that he or she must pay to finance her exposure to loss. a. I only b. ll only c. Both I and II d. Neither i nor 11