IC86 RISK MANAGEMENT - 04
| Q1.Which of these disasters took place in Japan? 1. Triangle Factory Fire 2. Seveso Dioxin Disaster 3. Mina Mata Mercury Disaster |
| Only 1 |
| Only 3 |
| Both 1 and 2 |
| Both 2 and 3 |
| Both 1 and 3 |
| Q2.For property loss exposure the property is divided into two types i.e. Real and Personal property. Which of these is NOT an example of Personal Property? |
| Finished Goods |
| Money |
| Supplies |
| Machines |
| Aircraft |
| Q3.Mr. Sinha is a very safe driver. he would mostly choose auto insurance with a ____. |
| High premium and Low deductible |
| Low premium and Low deductible |
| High premium and Nil deductible |
| Low premium and High deductible |
| High premium and High deductible |
| Q4.What is the plan called in which a comprehensive statement of the actions to be taken before, during, and after a disaster are included? |
| Environmental Disaster Plan |
| Business Continuity Plan |
| Risk Management Plan |
| Business Strategy Plan |
| Quick Recovery Disaster Plan |
| Q 5. XYZ Insurance company has the policy to invest the funds in a specific asset allocation technique by investing in Money market instruments, Equities, Fixed income securities, Cash, etc. Which type of risk is managed by XYZ Insurance company? |
| Financial Risk |
| Personal Risk |
| Strategic Risk |
| Operation Risk |
| Social Risk |
| Q6.Identify the CORRECT statements with respect to Study and Enquiry way of risk identification? 1. Strategic plans of the organization will provide an indication of likely future developments and therefore possible new exposures 2. This can be done by review of documents like Annual Reports. Agreements, Balance Sheet, Contracts, etc. 3. Analysis of the various contracts entered into by the organization such as sales, purchases, and leases will determine the degree to which risks are transferred into and out of the organization |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 3 |
| All 1, 2 and 3 |
| Q7.Selection of risk control and risk financing technique needs forecasting of ____. |
| Profits of the financial year |
| Expenses of the financial year |
| Predictability of the projected gains |
| Frequency and severity of expected losses |
| Benefits of such technique |
| Q8.Which method recognizes the value of the property depending upon the present value of income it produces? |
| Economic value |
| Reproduction value |
| Market value |
| Tax appraisal value |
| New replacement cost |
| Q9.A company bought insurance for its machinery with a 7% deductible. Which type of TWO risk management techniques did the management of the company use? |
| Risk avoidance and Risk retention |
| Risk avoidance and Risk mitigation |
| Risk transfer and Risk retention |
| Risk mitigation and Risk retention |
| Risk mitigation and Risk transfer |
| Q10.Identify which of these is NOT an advantage of having an Enterprise Risk Management system within the organization? 1. To identify opportunities 2. To reduce operational surprise 3. To eliminate risk |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| Both 1 and 3 |