Topic 4 Flashcards Preview

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Flashcards in Topic 4 Deck (10)
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1
Q

What is a risk?

A

A risk is the chance of something happening as a result of a hazard or threat which will impact on you, your business activity or planned event.

2
Q

What is risk management?

A

It is the process used to avoid, reduce or control risks. There should be a balance between the cost of managing the risk and the benefits you expect from taking the risk.

3
Q

Why do we need to manage risks?

A
  • The health and safety of employees, customers, volunteers and participants.
  • Your reputation, credibility and status.
  • Public and customer confidence in your organisation.
  • Your financial position.
  • The financial position of your clients.
  • Plant, equipment and the environment.
4
Q

What is meant by Due Diligence?

A

It is the level of judgement, care, prudence, determination, and activity that a person would reasonably be expected to do under particular circumstances.

5
Q

What is Insurance?

A

It is an arrangement in which a company or the state undertake to provide compensation for specified loss, damage, illness, or death in return for payment or a specific premium.

6
Q

What are four types of insurance?

A
  • Professional indemnity insurance.
  • Personal accident insurance.
  • Public liability insurance.
  • Income protection insurance.
7
Q

What is Professional indemnity insurance?

A

Generally covers people for legal liability where there has been error, omission or neglect by that person in carrying out their professional duties.

8
Q

What is Personal accident insurance?

A

It provides cover in the form of weekly fixed payment if a person is unable to work through an accident and it provides money in the form of a lump sum to people in case of an accidental death or permanent disability.

9
Q

What is Public liability insurance?

A

Generally taken out by a person or sporting organisation to protect is against claims made by a third party (like spectator and visitors) in respect of bodily injury or property damage that occurs due to the operation of the sporting organisation’s business.

10
Q

What is Income protection insurance?

A

Generally it is taken out by people who have a risk of losing income due to injury or illness. Regular income is covered while the injured person is unable to perform normal work and earn their own normal wages.