IC86 Mock Test Sample 10
Risk identification and management methods help organizations detect, analyze, and control potential threats effectively. Techniques such as Study and Enquiry, Flow Charts, HAZOP studies, Physical Inspections, Organizational Charts, and Fault Tree Analysis are commonly used to identify exposures and operational weaknesses. Strategic management focuses on organizational growth and handling speculative risks, while risk management emphasizes identifying and treating loss exposures. CAT bonds and insurance mechanisms assist in transferring financial risks. Proper valuation of property exposures includes installation and transportation costs. Effective risk management improves communication, operational safety, business continuity, profitability, and decision-making while minimizing uncertainties and unexpected losses in organizations.
1. Identify the advantages of the ‘Study and Enquiry’ method of risk identification.
a) Only 1
b) Only 3
c) Both 1 and 2
d) Both 2 and 3
2. Identify the advantages of the FLOW CHARTS method of risk identification.
a) Only 1
b) Only 2
c) Only 2 and 3
d) Only 1 and 2
3. Identify the advantages of the Hazard and Operability (HAZOP) study of risk identification.
a) Only 1
b) Only 2
c) Only 3
d) Only 1 and 2
4. Identify the advantages of the physical inspection / surveys method of risk identification.
a) Only 1
b) Both 1 and 2
c) Both 2 and 3
d) Both 1 and 3
5. Identify the basic elements of a valid contract.
a) All 1, 2 and 3
b) Only 3
c) Only 1 and 2
d) Only 2 and 3
6. Identify the correct statement.
a) If the objectives are more ambitious, it will be more difficult and more costly to achieve them
b) If the objectives are less ambitious, it will be more difficult and less costly to achieve them
c) If the objectives are more ambitious, it will be more difficult and less costly to achieve them
d) If the objectives are less ambitious, it will be less difficult and more costly to achieve them
7. Identify the CORRECT statement.
a) Only 2
b) Only 3
c) Both 1 and 3
d) Both 2 and 3
8. Identify the correct statement with regards to the risk management contribution to business profits.
a) Only I
b) Only II
c) Only III
d) I and III
9. Identify the CORRECT statement with respect to Risk Management techniques.
a) Only 1
b) Only 1 and 2
c) Only 2 and 3
d) Only 1 and 3
10. Identify the CORRECT statement with respect to Risk Management techniques.
a) Only 2
b) Only 3
c) Only 1 and 3
d) Only 2 and 3
11. Identify the CORRECT statement(s) in respect of Strategic Management on how it differs from Risk Management.
a) Only 1
b) Only 2
c) Only 3
d) Only 1 and 3
12. Identify the correct statement(s) with respect to Risk Management.
a) Only 1
b) Only 2
c) Both 1 and 2
d) Both 2 and 3
13. Identify the correct statement/s about CAT Bonds.
a) I and II
b) Only I
c) Only II
d) Only III
14. Identify the correct statement/s regarding the organisational charts method of risk identification.
a) Only I
b) I and II
c) I and III
d) II and III
15. Identify the CORRECT statements with respect to Hazard and Operability (HAZOP) study method.
a) Only 2
b) Only 3
c) Both 1 and 3
d) Both 2 and 3
16. Identify the correct statements with respect to Physical inspection / Survey method of risk identification.
a) Only 1
b) Only 3
c) Only 2 and 3
d) Only 1 and 2
17. Identify the CORRECT statements with respect to Study and Enquiry way of risk identification.
a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 3
18. Identify the correct way for valuing the Personal Property Exposures.
a) Purchase cost + Installation cost
b) Purchase cost + Transportation cost
c) Purchase cost - Transportation cost + Installation cost
d) Purchase cost + Installation cost + Transportation cost
19. Identify the disadvantages of the fault tree method of risk identification.
a) Only I
b) Only II
c) Only III
d) II and III
20. Identify the disadvantages of the Flow Charts method of risk identification.
a) Only 1
b) Only 2
c) Only 3
d) Both 2 and 3
