Risk assessment deals with determining the probability that particular risks will result in claims and the magnitude of the potential liability arising from those claims.

Question

Quizplus · Accepted Answer

Risk assessment is the process of evaluating potential risks and determining the probability and magnitude of negative consequences. In the context of insurance, risk assessment is used to determine the likelihood that certain risks will result in claims, and the potential liability associated with those claims. Therefore, the statement that "risk assessment deals with determining the probability that particular risks will result in claims and the magnitude of the potential liability arising from those claims" is true.

Risk Assessment Deals with Determining the Probability That Particular Risks