Q-11- . A large manufacturing organisation has renewed an insurance policy and has accepted a significant increase in the policy deductible. What is this most likely to indicate?
- Increased risk retention.
- Decreased risk tolerance.
- Decreased risk avoidance.
- Increased risk elimination.
Option-1 Increased risk retention.
Q-12- . For what primary reason could enterprise risk management (ERM) systems fail?
- Management can never override ERM decisions.
- Financial constraints could compromise the implementation of ERM systems.
- The use of ERM systems do not give the required assistance to risk managers.
- ERM decisions are always ignored across a business when a top-down approach is used.
Option-2 Financial constraints could compromise the implementation of ERM systems.
Q-13- What could a financial organisation make primary use of, to assess whether its risk management systems are likely to fail?
- Key risk indicators.
- Physical inspections.
- Key control indicators.
- Silo-based risk management.
Option-1 Key risk indicators.
Q-14- Which type of risks are characterised by a perceived lack of control and catastrophic potential?
- Delay risks.
- Dread risks.
- Unknown risks.
- Man-made risks.
Option-2 Dread risks
Q-15- All of the following are included in the risk identification process except
- Customers
- Competitors
- Subcontractors
- Vendors,
Option-2 Competitors are not included in the risk identification process.
Q-16- The people are taking the risk because of ___________
- Reward
- Evitability
- Inevitability
- Reward and inevitability
Option-4 The people are taking the risk because of Reward and inevitability.
Q-17- Risk assessment will involve finding answers to the following Question?
I. How likely is it for any of these risks to happen?
II. What will be the profit?
III. What would be the cost of eliminating or transferring this risk to someone else?
IV. What is the maximum possible financial loss that you will suffer in each of the listed situations?
Which statement of above is true?
- I and II
- I, II and III
- II, III, ad IV
- I, III, and IV
Option-4 I, III, and IV
Q-18- On what basis company selected the risk technique?
- Minimization the cost
- Maximization of profit
- Return on investment
- To secure the company
Option-1 Minimization the cost
Q-19- Risk management process starts with what should be consider before talking the decision of risk?
- Risk transfer
- Risk retention
- Risk assessment
- Risk identification
Option-4 Risk identification
Q-20- _________ policy matures on the assured death or on his attainment of a particular age whichever occurs earlier.
- Endowment
- Money back
- Joint life
- Single premium
Option-1 Endowment
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