1. What are the underlying objectives for the definition of risk?
2. How does risk fit on the spectrum of certainty and uncertainty?
3. Provide the formal definition of risk.
4. What are the three major categories of risk attitudes?
5. Explain the categories of risk and provide examples for each category.
6. What are risk exposures? Give examples of exposures.
7. What are perils? Give examples of perils.
8. What are hazards? Give examples of hazards.
9. In a particular situation, it may be difficult to distinguish between moral hazard and morale hazard. Why?
10. Some people with complete health insurance coverage visit doctors more often than required. Is this tendency a moral hazard, a morale hazard, or simple common sense? Explain.
11. Give examples of perils, exposures, and hazards for a university or college. Define each term.
12. Give examples of exposure for speculative risks in a company such as Google.
13. Inflation causes both pure and speculative risks in our society. Can you give some examples of each?
14. Define holistic risk and enterprise risk and give examples of each.