IC86 RISK MANAGEMENT - 8
| Q1.Combination of values exposed to loss, perils causing loss and financial consequences of loss lead to ___. |
| Natural Risks |
| Speculative Risks |
| Pure Risks |
| Emergency |
| Loss Exposures |
| Q2.In the book ‘Risk, Uncertainty and Profit’, which term is used to describe those events, for which the probability of occurrence can be calculated either on a rational basis or on the basis of statistical analysis of a number of similar events that have occurred in the past? |
| Risks |
| Uncertainties |
| Disasters |
| Exposures |
| Fears |
| Q3.What are chronic losses? |
| Losses that may happen sometimes and are medium-sized and irregular |
| Losses that may be controlled to a significant extent |
| Losses which are very large and may occur on rare occasions |
| Losses which are small and regular, and almost inevitable |
| Losses which are medium-sized and irregular |
| Q4.Which technique is developed by economists for tracing the flow of goods and services through an economy? |
| Fault Trees |
| HAZOP study |
| Input-Output analysis |
| Flow charts |
| Organizational charts |
| Q5.Identify the CORRECT statement - 1. Risks that are associated with changes in human wants are known as Dynamic Risks 2. Risks in which there is a chance of gain as well a loss is known as Speculative Risks 3. In Pure Risk, there is no chance of again but only a loss |
| Only 2 |
| Only 3 |
| Both 1 and 3 |
| Both 2 and 3 |
| All 1,2 and 3 |
| Q6.Risk Management can contribute directly to business profits by ____. 1. Reducing fluctuations in annual profits and cash flows 2. Cash flows retainment 3. Increasing the stock levels |
| Only 1 |
| Only 3 |
| 1 and 2 |
| 2 and 3 |
| All 1,2 and 3 |
| Q7.Which is the correct sequence of events in an Enterprise Risk Management (ERM) process? 1. Determining a response strategy 2. Monitoring progress 3. Identify the risks and opportunities |
| 1,2 and 3 |
| 1,3 and 2 |
| 2,1 and 3 |
| 2,3 and 1 |
| 3, 1 and 2 |
| Q8.___ risk does not affect a business organization. |
| Political |
| Economic |
| Financial |
| Emotional |
| Social |
| Q9.Identify the type of risk exposure in which the exposure is to motor vehicles, buildings, furniture, computers, etc. |
| Financial Assets Exposure |
| Legal Assets Exposure |
| Human Assets Exposure |
| Physical Assets Exposure |
| Q10.The post-loss objectives of a risk management program will apply to ___. 1. Pre-event phase 2. Post-event phase 3. Following event phase |
| Only 1 and 2 |
| Only 2 and 3 |
| Only 1 |
| Only 2 |
| Only 3 |