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
   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 ___.
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

Click Here for Answer Key