Risk Measurement & Management

The determination of qualitative and quantitative values of the risk related to a situation or a recognized threat is called _____

• Risk assessment

• Risk meaasurement

• Risk quantification

• none of the above

The process of evaluating and defining the cost and benefits associated with the risk consequences is called ______

• Risk assessment

• Risk Measurement

• Risk quantification

• None of the above

Identify the risk is based on ______ principle

• What can go wrong?

• How will it affect us?

• What should we do?

• How will u pay for it?

Treat the Risk is based on ____________ principle

• What can go wrong?

• How will it affect us?

• What should we do?

• How will you pay for it?

An inappropriate risk culture is always about taking too much risk is

• True

• False

VAR is a method of measuring the ____ in the value of the portfolio over a given time period and for a distribution of historical returns

• Profit

• Loss

• Profit and Loss

• None of the above

Which of the following is not a VAR methods?

• Variance-Covariance methods

• Monte Carlo Simulation

• Bear Stearns

• Historical Simulation

Under Historical Simulation first we need to rank the returns from ______ and then identify lowest 5% of the returns

• 5% of the returns

• Highest to lowest

• Lowest to highest

• None of the above

_____ is a monitoring tool to track the progress of risk management

• Risk Event Maps

• Flow chats with Risk flags

• Risk Questionnaires

• Risk Scorecards

______ is a survey tool to gather information about potential risks

• Risk Heat Maps

• Risk Questionnaires

• Flow charts with risk flags

• Structured Interviews