Which of the following factors can serve as exposure units that index various types of losses?

Study for the National Alliance Risk Management Exam. Dive into flashcards and multiple-choice questions, each complete with hints and explanations. Prepare thoroughly for your exam!

Annual mileage serves as a key exposure unit because it directly correlates with risk in the context of auto insurance or transportation-related assessments. The more miles a vehicle is driven, the higher the likelihood of accidents or wear and tear. In risk management, this quantifiable measure allows insurers and risk managers to predict potential losses more accurately based on exposure levels.

The other factors, while they may relate to aspects of risk management, do not serve as direct exposure units in the same way. Employee training hours could indicate levels of preparedness and risk reduction but do not provide a direct, quantifiable measure of exposure to loss like annual mileage does. Job satisfaction scores might reflect organizational health but lack a correlation with measurable losses. Similarly, employee absentee rates give insight into workforce stability and productivity but are not linked to a straightforward risk assessment in the same manner as mileage.

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