1. Choose the correct option: Alternative risk transfer and financing techniques fall into the following categories:
a. Only I
b. Only II
c. Only III
d. I and II
2. Choose the correct option/s from the following: “Combination of values exposed to loss, perils causing loss and financial consequences of loss lead to ___________.”
a. Only II
b. I and III
c. I and II
d. II and III
3. COCA stands for _______.
a. Contracts, Organisations, Complaints and Agreements
b. Contracts, Obligations, Consumers and Agents
c. Customers, Organisations, Commitments and Achievements
d. Customers, Organisations, Complaints and Assurance
4. Combination of values exposed to loss, perils causing loss and financial consequences of loss lead to ______.
a. Natural Risks
b. Speculative Risks
c. Pure Risks
d. Emergency
5. Complete the following statement: “Finite risk insurance products are particularly useful where the risk sought to be insured against is a _____________.”
a. High frequency event
b. High severity and low frequency event
c. High severity and high frequency event
d. Low severity and low frequency event
6. Contingent capital programmes provide additional sources of risk financing in case of natural catastrophes, and mitigate the impact of such catastrophes on ______ capital.
a. Insurer's
b. Insured’s
c. Agent's
d. Lloyd's
7. Credit securitisation, CAT bonds, weather derivatives and finite risk products are among the available ______.
a. Insurance companies
b. Alternative to insurance companies
c. Insurance products
d. Alternative to insurance products
8. Crisis Phase is under the overall responsibility of the ________.
a. Emergency Control Team
b. Crisis Control Team
c. Incident Control Team
d. Risk Management team
9. Determine the impact on the firm of imagined extreme adverse situations and impacts include financial, reputational, regulatory, credit ratings etc. What is this process known as?
a. Problem post mortem
b. Trend analysis
c. Contingency planning
d. Catastrophic risk transfer
10. Due a sudden change in Government policies, the tax burden on a company increases. Identify which risk is this?
a. Only 1
b. Only 2
c. Only 3
d. Only 1 and 2
11. Due to some reason, it is impossible Mr. P will ever get married. As per the probability of occurrence, what value will be assigned to this event?
a. Only 1
b. Only 2
c. Only 3
d. Both 1 and 3
12. Due to which hazard there is a probability of loss because of dishonesty or character defects of the insured person?
a. Fundamental
b. Morale
c. Legal
d. Moral
13. During the Emergency Response Phase, the management will ______.
a. Only 1
b. Both 1 and 2
c. Both 2 and 3
d. Both 1 and 3
14. Economic obsolescence of an asset is due to _______.
a. Only 1
b. Only 2
c. Only 3
d. Both 1 and 2
15. Emergency, disaster and catastrophe - all these terms are ______ frequency _____ severity risks.
a. High, High
b. Low, Low
c. High, Low
d. Low, High
16. Entering into reinsurance contracts is an example of _____________, for an insurance company.
a. Transfer of risk
b. Sharing of risk
c. Avoidance of risk
d. Reduction of risk
17. Enterprise Risk Management (ERM) in business is used by companies to ______.
a. Only 2
b. Both 1 and 2
c. Both 2 and 3
d. Both 1 and 3
18. ERM can also be described as _____.
a. Only 1
b. Only 2
c. Only 3
d. Both 1 and 2
19. Explain the law of large numbers.
a. The larger the number of cases may lead to variation from desired result
b. The smaller the number of cases, the better will be the ability to forecast future losses
c. The larger the number of cases, the better will be the ability to forecast future losses
d. The larger the number of cases, the more difficult it will be to get desired results
20. Explain the need for monitoring an implemented risk management programme.
a. Only I
b. I and II
c. I and III
d. II and III
