Palmer Polymers is changing from a traditional risk management program to an enterprise risk management program.As a first step,the risk manager determined all the risks that the organization faces.Next,she created a grid with loss frequency on the x-axis and loss severity on the y-axis.Then she plotted all of the loss exposures based on frequency and severity.The grid and the plotted loss exposures are called a
A)probability distribution.
B)catastrophe model.
C)risk map.
D)risk management information system.

Question

Quizplus · Accepted Answer

The risk manager created a grid and plotted all the loss exposures based on frequency and severity, which is called a risk map. Therefore, the correct choice is C - risk map. A probability distribution is a statistical representation of the likelihood of different outcomes in a given situation, a catastrophe model is a mathematical model used to estimate the likelihood and potential impact of a catastrophic event, and a risk management information system is a software system that assists with managing risks in an organization. None of these are described in the scenario provided.

Palmer Polymers Is Changing from a Traditional Risk Management Program