IC86 Mock Test Sample 18

Q1. Which statements are true for Insurance pool or Self-insurance groups?
a. Members contribute premiums to a common fund
b. These are an extension of self-insurance
c. Companies usually have diverse risk profiles
d. All of the above

Q2. Which disaster took place in Japan?
a. Triangle Factory Fire
b. Seveso Dioxin Disaster
c. Mina Mata Mercury Disaster
d. Both Seveso and Mina Mata disasters

Q3. ‘Potential loss to persons’ refers to which type of risk?
a. Market Risk
b. Personal Risk
c. Liability Risk
d. Speculative Risk

Q4. Which organisation introduced regulations after corporate frauds and accounting scandals?
a. IRDA
b. Bank of International Settlements
c. Committee of Sponsoring Organisations
d. London Stock Exchange

Q5. Which perils do not involve human intervention?
a. Economic perils
b. Social perils
c. Natural perils
d. Human perils

Q6. Who is primarily responsible for the risk management of a firm?
a. Risk Manager
b. Chairman
c. Auditor
d. Both Risk Manager and Chairman

Q7. Which disaster phase may last from days to months after a disaster?
a. Restoration phase
b. Recovery phase
c. Crisis phase
d. Emergency response phase

Q8. Which programmes provide additional financing in natural catastrophes?
a. Finite risk
b. Self insurance
c. Contingent capital
d. Captives

Q9. Confiscation or nationalization of private property by government creates which risk?
a. Speculative Risks
b. Political Risks
c. Social Risks
d. Natural Risks

Q10. Which risk identification technique provides first-hand information?
a. HAZOP study
b. Checklists and questionnaires
c. Flow charts
d. Physical inspection

Q11. Which technique is a diagrammatic representation of events causing a major event?
a. HAZOP study
b. Event analysis
c. Fault Tree
d. Flow charts

Q12. Risks associated with groups and economic or political changes are called ________.
a. Fundamental Risks
b. Pure Risks
c. Particular Risks
d. Static Risks

Q13. Which risks relate to failure to respond to complaints?
a. Personnel Risk
b. Personal Risk
c. Liability Risk
d. Financial Risk

Q14. Which technique traces the flow of goods and services through an economy?
a. Fault Trees
b. HAZOP study
c. Input Output analysis
d. Organisational charts

Q15. Which type of losses are rare but devastating for organizations?
a. Catastrophes
b. Chronic losses
c. Sporadic losses
d. Both catastrophes and sporadic losses

Q16. Which type of perils are also called “Acts of God”?
a. Fundamental perils
b. Natural perils
c. Moral perils
d. Human perils

Q17. Which planning ensures that an organization returns to normal after a crisis?
a. Emergency recovery planning
b. Crisis continuation planning
c. Business continuity planning
d. Business delivery planning

Q18. Risks resulting in either profit or loss due to market or political forces are called ________.
a. Liability risks
b. Commercial risks
c. Static risks
d. Pure risks

Q19. Which type of risk is connected with losses caused by nature or human mistakes?
a. Social Risk
b. Personal Risk
c. Static Risk
d. Dynamic Risk

Q20. Which risks involve only chance of loss and no chance of gain?
a. Pure Risks
b. Speculative Risks
c. Both Pure and Speculative Risks
d. None of the above