IC86 RISK MANAGEMENT - 14
| Q1.Which type of perils is also known as ‘Acts of God’? |
| Fundamental Perils |
| Natural perils |
| Moral perils |
| Human perils |
| Social perils |
| Q2.Identify the CORRECT statement with respect to Risk Management techniques -- 1. Using retention limits the liability of the firm to a specified amount 2. On the basis of affordability, one should take the decision to retain financial risk 3. Risk transfer could be more expensive than risk retention |
| Only 2 |
| Only 3 |
| Only 1 and 3 |
| Only 2 and 3 |
| Only 1 and 2 |
| Q3.Risk management of exposures to accidental losses can be viewed as a part of - |
| Top management |
| Strategic management |
| Tactical management |
| Operational management |
| Financial management |
| Q4.What kind of risk is - 'Losses due to Civil Commotion'? 1. Market Risk 2. Social Risk 3. Physical Risk |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| Q5.A __ person is normally frightened by risk and does not like to live with uncertainty. 1. Risk Averter 2. Risk Neutral 3. Risk Preferer |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 3 |
| Both 2 and 3 |
| Q6.Identify what involves examining the future and drawing up the plan of action. 1. Manage 2. Foresee 3. Organize |
| Only 2 |
| Only 1 |
| Only 3 |
| Both 1 and 2 |
| All 1, 2 and 3 |
| Q7.The probability of occurrence of an event has been assigned a value of ‘Zero’. What does this indicate? 1. Absolute Certainty of the event occurring 2. The remote possibility of the event occurring 3. Intrinsic impossibility of the event occurring |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| Both 2 and 3 |
| Q8.Which of these are examples of Human Perils? 1. Soil Erosion 2. Electrical Overload 3. Sabotage |
| Only 3 |
| Only 1 |
| Both 1 and 2 |
| Both 2 and 3 |
| All 1,2 and 3 |
| Q9.Identify the advantages of the Hazard and Operability (HAZOP) study of risk identification? 1. HAZOP can be employed at the planning and design stage of a project 2. HAZOP provides a qualitative approach to risk identification 3. HAZOP can be used for all types of industries |
| Only 1 |
| Only 2 |
| Only 3 |
| Only 1 and 2 |
| All 1,2 and 3 |
| Q10.Risk avoidance is the ideal risk management technique when the chance of loss is ____ and the loss severity is ____. |
| Low, Low |
| High, High |
| High, Low |
| Certain, Low |
| Low, High |