IC86 RISK MANAGEMENT - 05

Q1.What is the difference between Strategic Management and Risk Management?
   Strategic Management can be considered as a subset of Risk Management
  Risk Management focuses on an organization as a whole and not only on loss exposure as Strategic Management
   Risk Management encompasses both pure and speculative risks with equal importance
   Strategic Management encompasses both pure and speculative risks with equal importance
   None of the above
 
Q2.With respect to 'CREDIT SECURITISATION', identify the correct statement(s) - 1. In credit securitization, assets that are subject to credit risk (like receivables, etc.) are transferred to a specially created investment vehicle 2. This vehicle then issues securities that are backed by the transferred assets 3. Such products are similar to insurance products
   Only 1
   Only 2
   Only 3
   Both 1 and 2
   All 1,2 and 3
 
Q3.A ____ person reacts to risk in line with its statistical probability i.e. with the likelihood of its occurrence. He tries to neutralize or balance the chance of loss against the chance of gain. 1. Risk Averter 2. Risk Neutral 3. Risk Preferer
   Only 1
   Only 2
   Only 3
   Both 2 and 3
   Both 1 and 2
 
Q4.Identify which is NOT a component of ERM?
   Internal environment
   Corporate governance
   Control Activities
   Risk assessment
   Objective setting
 
Q5.The process of Consequential loss analysis (manufacturing) involves drawing a diagram of the main process. This diagram is known as ____.
   Rough Timings Diagram
   Critical Path Diagram
   Simulation Diagram
   Schematic Block Diagram
   Flow Chart Diagram
 
Q 6.Which of these are examples of Natural Perils? 1. Nuclear Fission 2. Avalanche 3. Soil Erosion
   Only 1
   Only 3
   Only 1 and 2
   Only 2 and 3
   All 1, 2 and 3
 
Q7.Business risk can be categorized into which of these categories? 1. Risks which are directly controllable by management 2. Risks which are partially manageable by management 3. Risks that are not under the direct control of management
   Only 1
   Only 2
   Both 1 and 3
   Both 2 and 3
   All 1, 2 and 3
 
Q8.In prioritizing, which are the risks to be addressed first?
   Major Risks
   Minor Risks
   Medium Risks
   Moderate Risks
   Catastrophe Risks
 
Q9.Under which of the following risk attitude category is a person willing to take a chance of gain against all odds posed by risks? 1. Risk Neutral 2. Risk Averter 3. Risk Preferer
   Only 1
   Only 2
   Only 3
   Both 1 and 3
   Both 2 and 3
 
Q10.Which risk identification technique is a diagrammatic representation of all the events which may give rise to some major event.
   Hazard and Operability (HAZOP) study
   Event analysis
   Fault Tree
   Flow charts
   Hazard Indices

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