IC86 RISK MANAGEMENT - 05
| Q1.What is the difference between Strategic Management and Risk Management? |
| Strategic Management can be considered as a subset of Risk Management |
| Risk Management focuses on an organization as a whole and not only on loss exposure as Strategic Management |
| Risk Management encompasses both pure and speculative risks with equal importance |
| Strategic Management encompasses both pure and speculative risks with equal importance |
| None of the above |
| Q2.With respect to 'CREDIT SECURITISATION', identify the correct statement(s) - 1. In credit securitization, assets that are subject to credit risk (like receivables, etc.) are transferred to a specially created investment vehicle 2. This vehicle then issues securities that are backed by the transferred assets 3. Such products are similar to insurance products |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| All 1,2 and 3 |
| Q3.A ____ person reacts to risk in line with its statistical probability i.e. with the likelihood of its occurrence. He tries to neutralize or balance the chance of loss against the chance of gain. 1. Risk Averter 2. Risk Neutral 3. Risk Preferer |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 2 and 3 |
| Both 1 and 2 |
| Q4.Identify which is NOT a component of ERM? |
| Internal environment |
| Corporate governance |
| Control Activities |
| Risk assessment |
| Objective setting |
| Q5.The process of Consequential loss analysis (manufacturing) involves drawing a diagram of the main process. This diagram is known as ____. |
| Rough Timings Diagram |
| Critical Path Diagram |
| Simulation Diagram |
| Schematic Block Diagram |
| Flow Chart Diagram |
| Q 6.Which of these are examples of Natural Perils? 1. Nuclear Fission 2. Avalanche 3. Soil Erosion |
| Only 1 |
| Only 3 |
| Only 1 and 2 |
| Only 2 and 3 |
| All 1, 2 and 3 |
| Q7.Business risk can be categorized into which of these categories? 1. Risks which are directly controllable by management 2. Risks which are partially manageable by management 3. Risks that are not under the direct control of management |
| Only 1 |
| Only 2 |
| Both 1 and 3 |
| Both 2 and 3 |
| All 1, 2 and 3 |
| Q8.In prioritizing, which are the risks to be addressed first? |
| Major Risks |
| Minor Risks |
| Medium Risks |
| Moderate Risks |
| Catastrophe Risks |
| Q9.Under which of the following risk attitude category is a person willing to take a chance of gain against all odds posed by risks? 1. Risk Neutral 2. Risk Averter 3. Risk Preferer |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 3 |
| Both 2 and 3 |
| Q10.Which risk identification technique is a diagrammatic representation of all the events which may give rise to some major event. |
| Hazard and Operability (HAZOP) study |
| Event analysis |
| Fault Tree |
| Flow charts |
| Hazard Indices |