IC86 RISK MANAGEMENT - 02
| Q1.When should a descriptive note on the item be made in the column provided at the end of the checklist? |
| Where the answer to a question is 'Y' |
| Where the answer to a question is 'N' |
| Where the answer to a question is 'NA' |
| Where the answer to a question is Unclear |
| None of the above |
| Q2.__ is NOT an advantage of a written risk management policy statement. |
| Establishing general objectives of the organization’s risk management function |
| Organizes the risk management objectives |
| Establishing and improving communication channels and MIS (Management Information Systems) |
| Co-coordinating the treatment of loss exposure at various levels of activities |
| Defining duties, responsibilities, and authority of the risk management department |
| Q3.Identify the risk which can cause direct damage or harm? 1. Market Risk 2. Social Risk 3. Physical Risk |
| Only 3 |
| Both 1 and 2 |
| Both 2 and 3 |
| Both 1 and 3 |
| All 1,2 and 3 |
| Q4.The Insurative Model which defines the total average cost of capital is used to determine - |
| How the company can get working capital in a most cost-effective manner |
| How capital can be used to increase efficiency by giving short term loans |
| How debt capital like debentures can be made effective than equity capital |
| How capital can be used to increase efficiency by using all sources of capital |
| How working capital can be reduced to a low level to increase efficiency |
| Q5.Which of the following is widely used as a framework and takes a top-down approach to risk management? |
| COSO approach |
| HAZOP approach |
| Reinsurance |
| Enterprise Risk Management |
| Insurance Management |
| Q6.Before a risk can be managed effectively, it must be examined carefully, identified, and measured in terms of which of the following factors, so that it may be assessed in comparison with similar risks - 1. Frequency of its likely occurrence 2. The severity of the effects of a loss 3. Perception of the probability of loss and its effects |
| Only 1 |
| Only 2 |
| Both 2 and 3 |
| Both 1 and 2 |
| All 1, 2 and 3 |
| Q7.In his book, "Risk, Uncertainty, and Profit", Prof. Frank Knight has mentioned that for events where the possibility 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, are termed as ___. |
| Dangers |
| Risks |
| Exposures |
| Uncertainties |
| Holocaust |
| Q8.Under the ___ method of risk identification, the risk assessment is done by compiling a list of threats to the business. |
| Check Lists |
| Flow Charts |
| Study and Enquiry |
| HAZOP study |
| Threat analysis |
| Q9.Which risk can arise from ‘confiscation, expropriation, nationalization and deprivation’ of private property by governments? |
| Speculative Risks |
| Dictatorship Risks |
| Political Risks |
| Social Risks |
| Natural Risks |
| Q10.____ is an example of Retrospective finite risk reinsurance. |
| Adverse loss development covers |
| Financial quota shares |
| Spread Loss covers |
| Funding covers |
| Double trigger concepts |