6-1 Risk Assessment and Strategies Vocabulary

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

• probability

• self-insure

• loss

• risk assessment

The likelihood of a risk actually resulting in a loss is called ____.

• risk assumption

• probability

• risk assumption

• problematic

_______ is the process of identifying your risks and deciding how serious they are. When you understand your risks and what you could lose, you can make better choices.

• Risk reduction

• Risk avoidance

• Risk assumption

• Risk assessment

_____ involves finding ways to lower your chance of incurring a loss. This could be done by changing your actions or other events.

• Risk transfer

• Risk avoidance

• Risk reduction

• Risk assessment

With _____, you stop the behavior or prevent the situation that leads to a chance of getting hurt.

• risk assessment

• risk assumption

• risk transfer

• Risk avoidance

______, is also known as risk shifting, occurs when you buy insurance to shift the risk of financial loss to an insurance company.

• Risk transfer

• Risk reduction

• Risk avoidance

• Risk assessment

______, also known as risk retention, is a strategy in which you accept the consequences of risk.

• Risk transfer

• Risk reduction

• Risk assessment

• Risk assumption

_______ is the chance of injury, damage, or economic loss. When you run in a crowded place, an accident with another runner or walker might occur.

• Risk avoidance

• Risk assessment

• Risk

• Self-insure

One method of assuming risk is to ______, which involves setting aside money to be used in the event of injury or loss of assets. Assets are things that are of value to you.

• self-reward

• self-insure

• self-respect

• self-motivated

A ____ is a written order to a bank to pay a stated amount to the person or business named on the face of the _______.

• deposit

• check

• bounced check

• withdrawal