IC86 - Risk Management Exam - 1

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Q 1. ______ can be seen as the opposite of insurance securitization.

Spread Loss Covers

Capital Markets

Insuratization

ART

Retrospective Finite Risk
 
Q 2. Identify the factor(s) that are taken into account while determining the total cost of risk - 1. The cost of any risk control measures 2. The cost of injury or damage 3. The cost of handling and settling the loss

Only 1

Both 2 and 3

Both 1 and 2

All 1,2 and 3

Only 3
 
Q 3. Techniques and approaches like Study and inquiry, Physical inspections, Checklists, Flow Charts, etc. are used for _______ of risks.

Identification

Solving

Evaluation

Assessment

Control
 
Q 4. Which of the following ambitions is an organization's capability to generate net income?

Good Balance Sheet

Growth

Stability of earnings

Continuity of operations

Profitability
 
Q 5. A business faces the possibility that it will be held legally liable for property damage or personal injuries suffered by others - Identify what type of loss exposure is this.

Common Loss Exposure

Property Loss Exposure

Liability Loss Exposure

Personnel Loss Exposure

Net Income Loss Exposure
 
Q 6. Identify which is NOT an example of a Funded Traditional Contingent Capital tool.

Income / Asset swaps

Banking products

Contingent debt

Captives

Securitization
 
Q 7. The process of Risk Management involves either - 1. Preventing losses 2. Minimizing losses 3. Paying for those losses that will inevitably occur

Only 1

Only 2

Both 1 and 2

Both 2 and 3

All 1,2 and 3
 
Q 8. Which of these are the aftermaths of a disaster? 1. The interruption period is quite long 2. Property damage 3. Substantial loss of life

Only 1 and 2

Only 2 and 3

Only 1 and 3

Only 3

All 1, 2 and 3
 
Q 9. CAT bonds, Credit securitization, Weather derivatives, and Finite risk products - these are examples of ______. 1. Risk Retention Groups 2. Alternatives to insurance products 3. Insurance products

Only 1

Only 2

Only 3

Both 1 and 3

All 1,2 and 3
 
Q 10. Concerning the risk triangle which shows the degrees of risks, the apex or tip of the degree of this triangle indicates that there may be a small number of risks that may have the most devastating effect so that it will make it impossible for the b

Organizational Risks

Catastrophe Risks

Minor Risks

Moderate Risks

Major Risks
 
Q 11. Under which risk category does the Risk of ill health, Risk of unemployment, and Risk of early death fall?

Fundamental Risk

Static Risk

Pure Risk

Physical Risk

Personal Risk
 
Q 12. Which risks are associated with groups, impersonal in origin and effect and these risks are in the form of political or Economic changes happening to a group?

Fundamental Risk

Pure Risk

Particular Risk

Static Risk

Speculative Risk
 
Q 13. Identify in which ways revenues may get reduced as a result of an accidental loss of property. 1. There is a reduction in receivables 2. There is a loss of rent 3. There are interruptions in the operation

Only 2

Both 1 and 2

Both 2 and 3

Both 1 and 3

All 1,2 and 3
 
Q 14. Protected cell companies and Rent-a-captives are examples of ________.

Finite Risk

Transferred Risk

Contingent capital

Self-insurance

Captives
 
Q 15. When catastrophe strikes, the firm is prepared to take decisive timely action and clear communications to all stakeholders and media about those actions and does initiate and complete those actions and communications effectively. Which type of process

Catastrophic Risk Transfer

Active Catastrophic Risk Management

Stress Testing

Extreme Contingency Planning

Catastrophe Business Integration


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