Risk Assessment & Underwriting Flashcards
6 cards from real ACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Risk Assessment & Underwriting flashcards as text
What is the first step in risk management for ACORD Certified Expert?
Answer: Identifying potential risks and hazards
Risk identification is the first step; you must know what risks exist.
What is a risk matrix used for in ACORD Certified Expert?
Answer: Evaluating risks based on likelihood and impact
A risk matrix plots risks on likelihood versus impact to help prioritize.
What does risk mitigation mean in ACORD Certified Expert?
Answer: Taking steps to reduce likelihood or impact of risks
Risk mitigation reduces the probability or potential impact of risks.
Which strategy involves transferring risk to a third party in ACORD Certified Expert?
Answer: Transfer (e.g., insurance)
Risk transfer shifts the financial impact to another party, commonly through insurance.
What is a risk register in ACORD Certified Expert?
Answer: A documented list of risks with analysis and response plans
A risk register records all identified risks, their assessment, and planned responses.
When should risk assessments be updated in ACORD Certified Expert?
Answer: Regularly and whenever significant changes occur
Risk assessments should be updated regularly and when conditions change.