Question

Question 31 The best strategy to be used for the first priority risks, is:
a. Transfer.
b. Terminate.
c. Treat
d. Tolerate.
e. Duplicate.

Question 32 Risk management principles should be that means appropriate and timely involvement of stakeholders enables their knowledge, views and perceptions to be considered. This results in improved awareness and informed risk management.
a. Continuously improving.
b. Customized.
c. Integrated.
d. Inclusive.
e. Dynamic.

Question 33 we consider system failures as a tactical risk, as it is part of the planning process.
True
False

Question 34 Shehab decided to review his personal risk management program. His car is 10 years old, and he would receive little money from his insurer if the car was damaged or destroyed. Shehab decided to drop the physical damage insurance on the car. From a risk management perspective, dropping the physical damage insurance on the car is best described as:
a. Increasing the use of non-insurance transfer in the risk management program.
b. Increasing the use of risk control in the risk management program.
c. Increasing the use of avoidance in the risk management program.
d. Increasing the use of retention in the risk management program.
e. None of mentioned.

Question 35 Reasons to adopt an enterprise risk management plan include all of the following EXCEPT
a. To increase net income.
b. None of above.
c. Decreased awareness.
d. Better risk assessment.
e. To create a competitive advantage.

Question 36 Basem, who is self-employed, is the main breadwinner for her family. Basem does not have disability income insurance because she has never stopped to consider the impact of a long-term disability upon her family. Basem's treatment of the risk of disability is best described as
a. Passive retention.
b. Active retention.
c. Non-insurance transfer.
d. Avoidance.
e. Insurance transfer.

Question 37 Safe Insurance Company plans to sell homeowners insurance in five cities. Safe expects that 8 homeowners out of every 100, on average, will report claims each year. The variation between the rate of loss that Safe expects to occur and the rate of loss that actually does occur is called
a. Speculative risk.
b. Peril.
c. Objective risk.
d. Subjective risk.
e. Pure risk.

Question 38 Preparing for potential losses in the most economical way, and reduction of anxiety are considered preloss objectives. True
False

Question 39 Terrorists attacked the World Trade Center on September 11, 2001. The attack simultaneously created large losses for life insurers, property insurers, workers compensation insurers, health insurers, and liability insurers. What name is given to an event that simultaneously creates large losses in several lines of insurance?
a. Speculate loss.
b. Clash loss.
c. Property loss.
d. Conditional loss.
e. Consequential loss.

Question 40 the maximum volume of risk an organization can take at a specific time.
a. Risk Tolerance.
b. Residual risk.
c. Risk appetite.
d. Risk capacity.
e. Inherent risk.

Answer 1

Ans 31 c) Treat

And 32 c)Integrated

Ans 33 False

Ans 34c) Increasing the use of avoidance in the risk management program

Ans 35 C) Decreased awareness.

Ans 36 d) Avoidance

Ans 37 a). Speculative risk

Ans 38 a)True

Ans 39 c) Property loss

Ans 40 Risk tolerance