IC86 RISK MANAGEMENT - 11

Q 1. Alternative risk transfer and financing techniques, as we see them today, basically fall into which of the following categories? 1. Finite Risk Reinsurance 2. Insurance securitization and insurance derivatives 3. Weighted risk management and informatization
   1 and 2
   2 and 3
   1 and 3
   All 1,2 and 3
   Only 2
 
Q2.If the source of danger is extreme heat in a manufacturing unit, what protection should the workers take? 1. Workers should use safety helmets 2. Workers should use clothes that shield them from heat 3. Workers should use safety belts
   Only 1
   Only 2
   Both 1 and 2
   Both 2 and 3
   All 1, 2 and 3
 
Q3.The Specialty Guide on Enterprise Risk Management' was prepared by ___.
   Credit Rating Information Services of India Limited - CRISIL
   Group of the American Society of Actuaries
   London Chambers of Commerce – ERM Group
   Group of London underwriters
   International Federation of Accountants (IFAC)
 
Q4.Which of these is/are TRUE with respect to a Disaster? 1. Disasters will never happen at a convenient time 2. Disasters are always unpredictable 3. The extent of the impact of a disaster will vary from incident to incident
   Only 1
   Only 3
   Only 2 and 3
   Only 1 and 2
   All 1,2 and 3
 
Q5.How can Risk Management contribute directly to business profits?
   By increasing stock levels
   By reducing stock levels
   By retaining cash flows
   By reducing the fluctuations in annual profits and cash flows
  By stabilizing cost
 
Q6.Praveen has personal property comprising of machinery. This needs to be valued based on the following data: Cost of Machinery - Rs. 25 lakhs Installation Costs - Rs. 8 lakhs Transportation Costs - Rs. 1 lakh What is the valuation?
   Rs. 17 lakhs
   Rs. 25 lakhs
   Rs. 16 lakhs
   Rs. 34 lakhs
   Rs. 33 lakhs
 
Q7.What is used in conjunction with the Strategic Risk Management process to ensure that the risks that are retained by the company do not exceed expectations during the implementation of the company's plan?
   Risk Management Culture
   Risk Control Process
   Contingency Planning
   Catastrophic risk management
   Enterprise Risk Management
 
Q8.____ is a tool that transfers insurance risk in an insurance bond or derivative format to capital market investors, rather than to the reinsurance market.
   Pure Risk Options
   Insurance Securitization
   Rent-a-captives
   Finite quota shares
   Finite Risk Reinsurance
 
Q9.Identify the method of valuing a property that recognizes the value of the property depending upon the present value of income it produces.
   Original Cost
   Market Value
   Tax Appraisal value
   New Replacement Cost
   Economic Value
 
Q10.The concept and process of Risk Management do NOT include ___.
   Identification of risk
   Control and prevention of risk
   Transfer of risk
   Evaluation of risk
   Complete elimination of risk

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