IC86 RISK MANAGEMENT - 11
| Q 1. Alternative risk transfer and financing techniques, as we see them today, basically fall into which of the following categories? 1. Finite Risk Reinsurance 2. Insurance securitization and insurance derivatives 3. Weighted risk management and informatization |
| 1 and 2 |
| 2 and 3 |
| 1 and 3 |
| All 1,2 and 3 |
| Only 2 |
| Q2.If the source of danger is extreme heat in a manufacturing unit, what protection should the workers take? 1. Workers should use safety helmets 2. Workers should use clothes that shield them from heat 3. Workers should use safety belts |
| Only 1 |
| Only 2 |
| Both 1 and 2 |
| Both 2 and 3 |
| All 1, 2 and 3 |
| Q3.The Specialty Guide on Enterprise Risk Management' was prepared by ___. |
| Credit Rating Information Services of India Limited - CRISIL |
| Group of the American Society of Actuaries |
| London Chambers of Commerce – ERM Group |
| Group of London underwriters |
| International Federation of Accountants (IFAC) |
| Q4.Which of these is/are TRUE with respect to a Disaster? 1. Disasters will never happen at a convenient time 2. Disasters are always unpredictable 3. The extent of the impact of a disaster will vary from incident to incident |
| Only 1 |
| Only 3 |
| Only 2 and 3 |
| Only 1 and 2 |
| All 1,2 and 3 |
| Q5.How can Risk Management contribute directly to business profits? |
| By increasing stock levels |
| By reducing stock levels |
| By retaining cash flows |
| By reducing the fluctuations in annual profits and cash flows |
| By stabilizing cost |
| Q6.Praveen has personal property comprising of machinery. This needs to be valued based on the following data: Cost of Machinery - Rs. 25 lakhs Installation Costs - Rs. 8 lakhs Transportation Costs - Rs. 1 lakh What is the valuation? |
| Rs. 17 lakhs |
| Rs. 25 lakhs |
| Rs. 16 lakhs |
| Rs. 34 lakhs |
| Rs. 33 lakhs |
| Q7.What is used in conjunction with the Strategic Risk Management process to ensure that the risks that are retained by the company do not exceed expectations during the implementation of the company's plan? |
| Risk Management Culture |
| Risk Control Process |
| Contingency Planning |
| Catastrophic risk management |
| Enterprise Risk Management |
| Q8.____ is a tool that transfers insurance risk in an insurance bond or derivative format to capital market investors, rather than to the reinsurance market. |
| Pure Risk Options |
| Insurance Securitization |
| Rent-a-captives |
| Finite quota shares |
| Finite Risk Reinsurance |
| Q9.Identify the method of valuing a property that recognizes the value of the property depending upon the present value of income it produces. |
| Original Cost |
| Market Value |
| Tax Appraisal value |
| New Replacement Cost |
| Economic Value |
| Q10.The concept and process of Risk Management do NOT include ___. |
| Identification of risk |
| Control and prevention of risk |
| Transfer of risk |
| Evaluation of risk |
| Complete elimination of risk |