IC86 RISK MANAGEMENT - 03

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Q1.Identify the true statement(s) with respect to Insurance pool or Self-insurance groups? 1. These groups tend to comprise companies with diverse risk profiles 2. These are an extension of self-insurance 3. Members contribute premiums to a fund, the proceeds of which are invested and paid out for claims
   Only 1
   Only 2
   Only 3
   Only 2 and 3
   All 1, 2 and 3
 
Q2.The phase of a risk management program that is concerned with containing the effect of any damaging or harmful incident is known as ___.
   Reporting phase
   Subsequent phase
   Pre Event
   Post Event
   During Event
 
Q3.Which of the following technique relates to risk control? 1. Paying for the losses 2. Preventing and minimizing losses 3. Ensuring the losses
   Only 1
   Only 3
   Only 2
   Both 1 and 2
   Both 1 and 3
 
Q4.Contingent capital programs provide additional sources of risk financing in case of natural catastrophes and mitigate the impact of such catastrophes on ___ capital.
   Insurer's
   Insured’s
   Agent's
   Lloyd's
   Ceder's
 
Q5.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
 
Q6.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
 
Q7.Which type of losses is quite rare but are huge and have a devastating effect on any organization which makes it impossible for it 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
 
Q8.Identify the CORRECT statement with respect to Risk Management techniques - 1. Risk transfer could be more expensive than risk retention 2. On the basis of affordability, one should take the decision to retain financial risk 3. Using retention limits the liability of the firm to a specified amount
   Only 1
   Only 1 and 2
   Only 2 and 3
   Only 1 and 3
   All 1,2 and 3
 
Q9.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
 
Q10.What 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

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