IC86 - Risk Management Exam -3

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Q 1. Identify the true statement(s) concerning the Insurance pool or Self-insurance groups? 1. These groups tend to be comprised of companies with diverse risk profiles 2. These are an extension of self-insurance 3. Members contribute premiums to a fund, and the

Only 1

Only 2

Only 3

Only 2 and 3

All 1, 2 and 3

Q 2. The phase of a risk management program concerned with containing the effect of any damaging or harmful incident is known as ______.

Reporting phase

Subsequent phase

Pre Event

Post Event

During Event

Q 3. Which of the following techniques relates to risk control? 1. Paying for the losses 2. Preventing and minimising losses 3. Ensuring the losses

Only 1

Only 3

Only 2

Both 1 and 2

Both 1 and 3

Q 5. In the case of accidental loss to property, identify which among the following will result in a reduction in revenue. 1. Reduction in Receivables 2. Loss of Rent 3. Contingent business interruption

Only 1

Both 1 and 2

Both 2 and 3

Both 1 and 3

All 1, 2 and 3

Q 6. What are the main causes of the economic obsolescence of property? 1. Wear and tear due to aggressive use 2. Change in fashion 3. Improvement in technology

Only 3

Only 1 and 2

Only 1 and 3

Only 2 and 3

All 1,2 and 3

Q 7. Which types of losses are rare but are huge and have a devastating effect on any organization, making it impossible to achieve any of its targets? 1. Catastrophes 2. Chronic 3. Sporadic

Only 1

Only 2

Only 3

All 1, 2 and 3

Both 1 and 3

Q 8. Identify the CORRECT statement concerning Risk Management techniques - 1. Risk transfer could be more expensive than risk retention 2. Based on affordability one should decide to retain financial risk 3. Using retention limits

Only 1

Only 1 and 2

Only 2 and 3

Only 1 and 3

All 1,2 and 3

Q 9. Risk Management is the ___________ of risk factors.

Identification, Avoiding, Control and Prevention

Prevention, Evaluation, and Control

Reviewing, monitoring, and managing

Identification, Evaluation, Control and Prevention

Identification, Analysis, Control and Prevention

Q 10. Which kind of risk is - 'Losses due to burglary' ? 1. Market Risk 2. Physical Risk 3. Social Risk

Only 1

Only 2

Only 3

Both 1 and 2

Both 1 and 3

Q 11. ____________ involves the transfer of assets subject to credit risk, such as receivables, to a specially created investment vehicle. The vehicle in turn issues securities. She was backed? by the transferred assets.

Captive Insurance

Insurance Pool

Credit Securitization

Self-insurance

Risk Retention Groups

Q 12. Identify what finite risk reinsurance products combine.

Risk financing and risk mitigation

Risk identifying and risk transfer

Risk identifying and risk mitigation

Risk financing and risk transfer

Risk transfer and risk mitigation

Q 13. The post-loss objectives of an entity would be ______. 1. Steady Growth 2. Profitability 3. Stability of Earnings

Only 3

Both 1 and 2

Both 2 and 3

Both 1 and 3

All 1, 2 and 3

Q 14. Which of these are examples of Economic Perils? 1. Inflation 2. Forgery 3. Stock market decline

Only 3

Only 1 and 2

Only 1 and 3

Only 2 and 3

All 1,2 and 3

Q 15. Determine the impact on the firm of imagined extreme adverse situations and impacts include financial, reputational, regulatory, credit ratings, etc. What is this process known as?

Problem post mortem

Trend analysis

Contingency planning

Catastrophic risk transfer

Stress testing


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