The following commercial risks have been identified, along with the associated Probability (P) and Severity of Impact (Sol). Rank the threat value in terms of lowest threat to highest threat value. i. Credit Issues: P=remote, Sol = marginal; ii. Performance Risk: P=occasional, Sol = Critical; ii. Financial Crime Involvement: P=Occasional, Sol=Serious Question Question 19 options: i. ii. li. ii. lii. i. iii. i. ii. i. ii. ii. ii. i. i

What is the true cost of going to the doctor? options:   The amount you pay minus the amount your insurance covers (i.e. the amount you pay out of pocket)   The amount you pay out of pocket, plus the worth of the time you lose while waiting, plus the travel cost, plus the increased risk of being infected with Covid-19 while at the doctor's office   There is no cost if your insurance is good enough.   The amount you pay

Define the term Risk Analysis?

*the defintion of the top event in safty is describes the point where we no longer have satisfactory control over the hazard.

Consider the problem of moral hazard where a firm has the choice of two projects: a safe project with $1300 revenue, and a risky project with $2500 revenue with probability ½ or nothing. A $1000 bond can fund either project and the CD rate is 10%. Select the answer that makes most sense for the following questions. Question: Profit from the safe project is: $50 $200 $100 can't be determined

Please identify the types of moral hazard. Using expensive drugs instead of genetics Skipping the flu vaccine Leaving the stove on Knee replacement surgery instead of painkillers >

Table 1 Injurer Victim Care Injurer Care Victim Prob of Accident Care Cost Care Cost WyX, p(x1,x,) None None 15% None Care 12% Care None 10% Care Care 3 2 6% a) Is this a situation of unilateral precaution or bilateral precaution? Assume that the harm caused by each accident (denoted by A in class) is equal to 2. b) Given the information in Table 1, fill in the values in the empty cells of Table 2 Table 2: Injurer care Victim's care Expected harm from Total expected social accident costs p(x,Xu)A None None None Care Care None Care Care

Which of the following items may be used to provide insurability information? A. Police records B. Physical inspections C. Checking account statements D. Lie detector tests

Problem 1: Estimate the benefits from increasing the protection for 50,000 powerplant workers. Average hourly wage ($) = $10 + 20 * probability of death on the job a. What is the MWTP for a 1% reduction in the probability of death on the job? Explain your approach. b. Suppose that the probability of death on the job is 0.05. What are the benefits of a safety program that reduces the probability of death by half? Explain.

Ex-ante risk (such as adverse selection) is greater than ex-post risk (such as moral hazard) True False