IC86 - Risk Management Exam - 4

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Q 1. Which of these disasters took place in Japan? 1. Triangle Factory Fire 2. Seveso Dioxin Disaster 3. Mina Mata Mercury Disaster

Only 1

Only 3

Both 1 and 2

Both 2 and 3

Both 1 and 3
 
Q 2. For property loss exposure the property is divided into two types i.e. Real and Personal property. Which of these is NOT an example of Personal Property?

Finished Goods

Money

Supplies

Machines

Aircraft
 
Q 3. Mr. Sinha is a very safe driver. He would mostly choose auto insurance with a _______.

High premium and Low deductible

Low premium and Low deductible

High premium and Nil deductible

Low premium and High deductible

High premium and High deductible
 
Q 4. What is the plan called in which a comprehensive statement of the actions to be taken before, during, and after a disaster is included?

Environmental Disaster Plan

Business Continuity Plan

Risk Management Plan

Business Strategy Plan

Quick Recovery Disaster Plan
 
Q 5. XYZ Insurance company has a policy to invest the funds in a specific asset allocation technique by investing in Money market instruments, Equities, Fixed-income securities, Cash, etc. Which type of risk is managed by XYZ Insurance company?

Financial Risk

Personal Risk

Strategic Risk

Operation Risk

Social Risk
 
Q 6. 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
 
Q 7. Selection of risk control and risk financing technique needs forecasting of _______.

Profits of the financial year

Expenses of the financial year

Predictability of the projected gains

Frequency and severity of expected losses

Benefits of such a technique
 
Q 8. Which method recognizes the value of the property depending upon the present value of income it produces?

Economic value

Reproduction value

Market value

Tax appraisal value

New replacement cost
 
Q 9. A company bought insurance for its machinery with a 7% deductible. Which type of TWO risk management techniques did the management of the company use?

Risk avoidance and Risk retention

Risk avoidance and Risk mitigation

Risk transfer and Risk retention

Risk mitigation and Risk retention

Risk mitigation and Risk transfer
 
Q 10. Identify which of these is NOT an advantage of having an Enterprise Risk Management system within the organization. 1. To identify opportunities 2. To reduce operational surprise 3. To eliminate risk

Only 1

Only 2

Only 3

Both 1 and 2

Both 1 and 3
 
Q 11. The purpose of Loss Control Management is to limit the total cost of losses to the lowest possible level by implementing which of the following measures - 1. Protect people from loss 2. Maximize the recovery from any loss that has occurred 3. Prevent

Only 3

Both 1 and 2

Both 2 and 3

Both 1 and 3

All 1, 2 and 3
 
Q 12. Which of these hazards can be termed as a human-made hazard? 1. Hurricane 2. Radioactive pollution 3. Volcano

Only 1

Only 2

Only 3

Both 1 and 2

All 1,2 and 3
 
Q 13. Emergency, disaster, and catastrophe - all these terms are ______ frequency _____ severity risks.

High, High

Low, Low

High, Low

Low, High

None of the above
 
Q 14. Loss of gas supply is an example of ______.

System failure

Man-made disaster

Environmental disaster

Deliberate disruption

Loss of utilities and services
 
Q 15. What is 'Rental Value Loss' an example of?

Consequential Loss Analysis

Reduction in Receivables

Loss on profits of finished goods

Contingent business interception

Increase in expenses



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