Q-11- Risk probability and impact assessment generally finds answers to the following questions EXCEPT
- What is the probability that a risk will occur?
- What will it cost the business if it does happen?
- What is the control in the business in similar type of industry?
- The probability and impact Matrix indicates which isks need to be managed.
Option-3 What is the control in the business in similar type of industry?
Q-12- Poor morale and talent retention is a risk for
- Human Resources
- Sales and Marketing
- Finance and Accounts
- Information Technology
Option-1 Poor morale and talent retention is a risk are for Human Resource.
Q-13- From below which is the view of Warren Buffet’s on the subject of Risk and Risk Management
- Risk comes from not knowing what you are doing
- Risk management is about people and processes
- Risk management is a central part of any entity’s strategy management
- Risk management is th eart of using lessons from the past to mitigate misfortune
Option-1 Risk comes from not knowing what you are doing.
Q-14- The following is not one of the External factors to a bank’s credit risk
- Fluctuations in interest rates
- Fluctuation in Lending Policy
- Fluctuation in Exchange Rates
- Fluctuation in Governement Policies
Option-2 Fluctuation in Lending Policy is not one of the External factors to a bank’s credit risk.
Q-15- The following is NOT one of the components of credit risk
- Political Risk
- Default Risk
- Exposure Risk
- Recovery Risk
Option-1 Political Risk is not one of the components of credit risk.
Q-16- EAD- Exposure at Default refers to
- the amount that is exposed
- the loss likely to be suffered
- the risk of a borrower defaulting on the payment
- None of the above
Option-1 EAD fers to the amount that is exposed
Q-17- The following one is not of the Governance risks
- There is no adequate treatment of Shareholders
- Rights to key ownership functions are not defined
- Disclosure and transparency norms are not articulated
- Responsibilities of the Board of Directors are not defined
Option-4 Responsibilities of the Board of Directors are not defined.
Q-18- An organization cannot identify an opeational loss event by any one of the following triggers
- Customer complaint
- Regulatory inspection
- Concurrent or managment audit
- None of the above
Option-4 None of the above.
Q-19- We are exposed to risks arising out of the dynamic macroeconomic environment as well as internal business environment. The following one is not termed as regulatory
- Predatory pricing
- Unanticipated labour unrest
- Non renewal of minimum leases
- Non availability of protective trade measures
Option-2 Unanticipated labour unrest
Q-20- __________ is the process of evaluating and defining the cost and benefits associated with the risk consequences.
- Risk Assessment
- Risk Management
- Risk Quantification
- None of the above
Option-3 Risk Quantification is the process of avaluating and defining the cost and benefits associated with the risk consequences.
These Insurance GK questions are based on Risk Management and Practices followed in the industry. Awareness of e-IA and practices followed in managing and maintaining various accounting standards.