IC86 - Risk Management Exam - 8

Find More Mock Tests Here


Q 1. Within the scope of the Risk Manager's duties, functions, and responsibilities, what is essential to gather and provide information, including statistical data, required for risk analysis and risk handling?

Insurance Accounting

Record Keeping

Preparing risk and insurance manuals

Budgeting

All of the above

Q 2. Identify the correct statements concerning the Physical inspection / Survey method of risk identification - 1. This method does not assess the risk-handling capacity of site management and staff 2. This method identifies risks in and in the vicinity

Only 1

Only 3

Only 2 and 3

Only 1 and 2

All 1, 2 and 3

Q 3. Saroj, who is in charge of loss control management of her company, wants to ensure that good proactive measures are in place to limit the extent of any loss and maximize the recovery from loss. Which of these is/are proactive measures? 1. In

Only 2

Only 1

Both 1 and 2

Both 1 and 3

All 1, 2 and 3

Q 4. Which method of Business Impact Analysis specifies the amount of unrecoverable transactions or data that the company can tolerate?

Recovery Point Objectives (RPOs)

Recovery Time Objectives (RTOs)

Breakeven Point Objectives (BPOs)

Turnaround Point Objectives (TPOs)

Crisis Point Objectives (CPOs)

Q 5.
_________ are any condition due to which there is a possibility of financial loss to an individual or family by causes like disability, death, sickness, or unemployment.

Net income loss exposures

Personnel loss exposures

Personal loss exposures

Property loss exposures

Liability exposures

Q 6. Identify the true statement about strategic management. 1. The focus is on an organization as a whole and not only on loss exposures 2. It deals with speculative risks and not with any other risk 3. The aim is the growth of an organization to fulfill

Only 1

Only 3

Both 1 and 2

Both 1 and 3

All 1, 2 and 3

Q 7. The measures to limit the extent of any loss and to maximize the recovery from loss is/are - 1. Active 2. Passive 3. Proactive

Only 1

Only 2

Only 3

Only 1 and 2

Only 2 and 3

Q 8. Which of the following statements is INCORRECT with regards to the risk management contributions to business profits?

Risk management can make it possible to continue operations following a loss.

Risk management can reduce the fluctuations in annual profits and cash flows.

Employees do not prefer to work for firms managing pure risks

Successful management of pure risks permits to investigate and assume attractive speculative risk

None of the above

Q 9. A 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

Q 10. 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 based on a statistical analysis of several similar events that h

Risks

Uncertainties

Disasters

Exposures

Fears

Q 11. 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 that are small and regular, and almost inevitable

Losses that are medium-sized and irregular

Q 12. 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

Organisational charts

Q 13. 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 as loss ar,e known as Speculative Risks 3. In Pure Risk, there is no chance of a g

Only 2

Only 3

Both 1 and 3

Both 2 and 3

All 1,2 and 3

Q 14. Risk Management can contribute directly to business profits by _______. 1. Reducing fluctuations in annual profits and cash flows 2. Cash flow retainment 3. Increasing the stock levels

Only 1

Only 3

1 and 2

2 and 3

All 1,2 and 3

Q 15. 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


Find More Mock Tests Here