IC86 RISK MANAGEMENT - 06
| Q1.What is/are the disadvantages of the Fault Tree method of risk identification? 1. It's expensive when compared to physical inspection 2. All types of organizations cannot use it 3. Discovering the proximate cause of the risk event is not possible in this method |
| Only 1 |
| Only 2 |
| Only 2 and 3 |
| Only 3 |
| All 1,2 and 3 |
| Q2.A situation of a financial loss to a business due to death, disability, retirement, or resignation of key employees is known as __. |
| Income loss exposures |
| Property loss exposures |
| Personnel loss exposure |
| Personal loss exposure |
| Liability exposures |
| Q3.Identify which type of risk is this, based on the following statements - 1. In this risk, there can be either a gain or loss 2. This category of risk is concerned with the outcome of uncertain events 3. Examples of this risk are - Consumer behaviour and New technology |
| Social risk |
| Liability risk |
| Static Risk |
| Pure Risk |
| Speculative risk |
| Q4.The risk management technique of ___ is an example of Self Insurance. |
| Indemnity |
| Avoidance |
| Acceptance |
| Noninsurance transfer |
| Retention |
| Q5.Which of these is NOT a post-loss risk management objectives? |
| Survival |
| Continuity of operations |
| Profitability |
| Reduction of anxiety |
| Stability of earnings |
| Q6.Due to some reason, it is impossible the Mr. P will ever get married. So as per the probability of occurrence, what value will be assigned to this event? 1. One 2. Ten 3. Zero |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 3 |
| Both 1 and 2 |
| Q 7. Insurers generally use the word 'risk' in two distinctive meanings viz. as a subject matter of insurance and different types of __. |
| Perils |
| Losses |
| Hazards |
| Exposures |
| Uncertainties |
| Q8.What is defined as the variation in the outcome that occurs over a specified period in a given situation? |
| Probability |
| Uncertainty |
| Risk |
| Expected value |
| Dynamics |
| Q9.Which types of risks are considered in the context of the existence of a chance of loss only, but not the chance of gain at all? |
| Pure Risks |
| Speculative Risks |
| Both Pure and Speculative Risks |
| Neither Pure nor Speculative Risks |
| None of the above |
| Q10.Identify the advantages of the 'Study and Enquiry' method of risk identification. 1. Analysis of annual accounts gives a broad indication of the type of activities involved, amount of assets involved, and earnings being made 2. Analysis of Contracts and Agreements entered by the organization gives a broad idea of the extent of risks involved 3. Site visits help gives first-hand information of the risks involved and avoid reliance on reports |
| Only 1 |
| Only 3 |
| Both 1 and 2 |
| Both 2 and 3 |
| Both 1 and 3 |