Risk Management Quiz

risk management questions

Risk Management Analysis Quiz:

Ques. __ is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.
(a) Loss
(b) Profit
(c) Risk
(d) Uncertainty

Ans. (c)

Ques. In static risk __
(a) Losses cannot be predicted
(b) Losses can be predicted
(c) Losses are not easily predictable
(d) None of these

Ans. (b)

Ques. Relative variation of actual loss from expected loss is called __
(a) Subjective risk
(b) Objective risk
(c) Actual loss
(d) Expected loss

Ans. (b)

Ques. Risk evaluation breaks down into two parts. They are:
(a) Probability of loss occurring and its severity
(b) Risk calculation and risk analysis
(c) Loss calculation and avoidance
(d) None of the above

Ans. (a)

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Ques. Risk is measurable __
(a) Loss
(b) Profit
(c) Uncertainty
(d) None of the above

Ans. (c)

Ques. __ is planned retention by which the part or full of the exposure arising a risk factor is retained by the firm.
(a) Reinsurance
(b) Self-insurance
(c) Risk financing
(d) None of the above

Ans. (b)

Ques. A risk which can be measured using a numerical scale is known as
(a) Quantifiable risk
(b) Static risk
(c) Dynamic risk
(d) Speculative risk

Ans. (a)

Ques. __ Refers to a situation where the outcome is not certain
(a) Uncertainty
(b) Loss
(c) Insurance
(d) None of the above

Ans. (a)

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Ques. Which of the following is the method of risk identification?
(a) Insurance
(b) Standard deviation method
(c) Checklist method
(d) None of these

Ans. (c)

Ques. Spreading of risk otherwise termed as __
(a) Shifting of risk
(b) Acceptance of risk
(c) Reduction of risk
(d) Spreading of risk

Ans. (a)

Ques. __ is concerned with the conversion of a firm’s assets and earning power against the risk of accidental loss.
(a) Risk retention
(b) Risk management
(c) Risk control
(d) Risk identification

Ans. (d)

Ques. If any risk is concerned with financial loss, it is termed as __
(a) Business risk
(b) Business loss
(c) Financial risk
(d) Insurable claim

Ans. (c)

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Ques. __ is the process of reducing frequency and severely of losses.
(a) Loss prevention
(b) Loss Control
(c) Avoidance of risk
(c) None of the above

Ans. (b)

Ques. __ another name of fundamental risk
(a) Systematic risk
(b) Interest rate risk
(c) Group risk
(d) Loss

Ans. (c)

Ques. Pure risk situations are those where there is a possibility of __
(a) Loss or no loss
(b) Loss
(c) Variation
(d) None of the above

Ans. (a)

Ques. Willingness to retain the whole or part of a given risk is called __
(a) Risk retention
(b) Risk carrying
(c) Risk bearing
(d) None of the above

Ans. (a)

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Ques. Speculative risk is a situation in which __ is possible
(a) Loss
(b) Profit
(c) Either a profit or loss
(d) None of the above

Ans. (c)

Ques. The annual maintenance contract for computers is __
(a) Risk avoidance
(b) Loss reduction
(c) Insurance
(d) Transfer of risk by contract

Ans. (d)

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