Financial Literacy Ch 6 Vocabulary Review

Front

The chance of injury, damage, or economic loss.

Back

risk

Front

A physical injury, damage to property, or disappearance of property or other assets.

Back

loss

Front

The likelihood of a risk resulting in a loss.

Back

probability

Front

The price you pay for insurance coverage.

Back

premium

Front

The process of identifying risks and deciding how serious they are.

Back

risk assessment

Front

Finding ways to lower your chance of incurring a loss.

Back

risk reduction

Front

Stopping behavior that leads to a risk.

Back

risk avoidance

Front

Passing risk to another party.

Back

risk transfer

Front

Setting aside money to be used in the event of injury or loss of assets.

Back

self-insure

Front

Accepting the consequences of risk.

Back

risk assumption