IC86 RISK MANAGEMENT - 16
| Q1.Alternative risk transfer and financing techniques fall into the ___ category. 1. Insurance securitization and insurance derivatives 2. Finite Risk Reinsurance 3. Weighted risk management and ingratiation |
| Both 1 and 2 |
| Both 2 and 3 |
| Only 1 |
| Only 2 |
| Only 3 |
| Q2.If the records of an organization's account receivable get destroyed, they sometimes can be reconstructed. However, what difficulty can be faced? |
| Impossible to reconstruct the data |
| Reduction in the total receivables |
| Reduction in the net collections |
| Wastage of time |
| None of the above |
| Q3.The simplest definition of risk management can be the identification, evaluation, control, prevention, and __ of risk. |
| Retention |
| Transfer |
| Assessment |
| Protection |
| Expectation |
| Q4.Which of these is/are the objectives of Integrated Risk Management? 1. ‘Bottom line’ comprehensive balance sheet protection 2. Protection against downside risk and major fluctuations of operating results 3. Better use of capacity by excluding over hedging effects |
| Only 1 |
| Only 3 |
| Both 1 and 3 |
| Both 2 and 3 |
| All 1,2 and 3 |
| Q5.Heavy floods in the monsoon cause losses. This is an example of which type of risk? 1. Social Risk 2. Market Risk 3. Physical Risk |
| Only 2 |
| Only 3 |
| Only 1 |
| Both 1 and 3 |
| Both 2 and 3 |
| Q6.Physical depreciation of an asset is due to ____. 1. Change in fashion 2. Aging of the asset 3. Wear and Tear |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| Both 2 and 3 |
| Q7.What is the reason behind the difficulty in comparing the risk management costs with costs in similar organizations? 1. Because some companies may consider such costs as overhead expenses, whereas some others may allocate them to different profit centers 2. Because of different systems of cost allocation followed by different companies 3. Because some companies spend more on risk management and other companies spend less |
| Only 1 |
| Only 2 |
| Only 3 |
| Only 1 and 2 |
| All 1,2 and 3 |
| Q8.____ is/are examples of Environmental Disaster. 1. Hurricane 2. Tornado 3. Freezing conditions |
| Only 2 |
| Only 1 and 2 |
| Only 2 and 3 |
| Only 1 and 3 |
| All 1, 2 and 3 |
| Q9.Identify the measures which are used to limit the extent of any loss and to maximize the recovery from loss: 1. Active 2. Passive 3. Proactive |
| Only 1 and 2 |
| Only 2 and 3 |
| Only 2 |
| Only 1 |
| All 1, 2 and 3 |
| Q10.The components which are required for achieving the four categories of objectives that form the framework of ERM are ___. 1. Control Activities 2. Information and Communication 3. Monitoring |
| 1 and 2 |
| 2 and 3 |
| 1 and 3 |
| All 1, 2 and 3 |
| None of the above |