Cost of the risk is product of which of the following 2 factors:

A. Insurance and Assurance

B. Happenings and result

C. Cause and effect

D. Probability and impact

Answer: Option D

Solution(By Examveda Team)

Cost of the risk is product of Probability and impact. This means that the total amount of risk exposure is the probability of an unfortunate event occurring, multiplied by the potential impact or damage incurred by the event. If you put a dollar value on the impact, then you can value the risk and in a simple way compare one risk factor to another.

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Related Questions on Insurance

Domiciliary Hospitalisation means –

A. Treatment taken as an Outpatient in an hospital

B. Treatment taken as an Inpatient in an hospital

C. Treatment taken both as an Outpatient and as an Inpatient

D. Treatment taken at home as the patient could not be moved to hospital

State which is correct out of the following

A. A Term Insurance policy cannot be convered into any other policy during its duration

B. Term policy is available both a separate policy and as a rider in another policy

C. Term policy can be issued with lifelong renewability option

D. All Term covers will have a disability rider