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RISK MANAGEMENT_CHAPTER 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Risk is measurable

a)

True

b)

False

2.

Two elements of uncertainty are

a)

Ignorance and measurable

b)

Lack of information and measurable

c)

Ignorance and lack of information

d)

Lack of information and controllable

3.

Pure risk is a type of risk with the possibility of good outcomes

a)

True

b)

False

4.

Which of the following is not the objectives of risk management

a)

To gain competitive advantages

b)

To minimise losses

c)

To gain financial or non-financial benefits

d)

To avoid problem

5.

In internal control, risk management and assessment is the responsibility of

a)

Board of Directors

b)

Management Committee

c)

The Audit Committee

d)

All of the above

6.

CIMA's Risk Management cycle identify various activities that should be undertaken during risk management. Which of the following options shows the steps in the correct order?

a)

Identify risk areas, Develop Risk response strategy, Allocate Responsibilities, Establish risk management group

b)

Establish risk management group, Identify risk areas, Develop Risk response strategy, Allocate Responsibilities

c)

Allocate Responsibilities, Identify risk areas, Develop Risk response strategy, Establish risk management group

d)

Establish risk management group, Identify risk areas, Allocate Responsibilities, Develop Risk response strategy

7.

Which of the following is not the method in risk reduction

a)

Acceptance

b)

Pooling

c)

Minimisation

d)

Hedging

8.

A common example of risk transfer is insurance.

a)

True

b)

False

9.

When the existing risks are change or new risks are identified, the risk will be added to ___________________for categorisation purposes

a)

Risk identification

b)

Risk assessment

c)

Risk planning

d)

Risk monitoring

10.

The final strategy in risk is

a)

Transfer/Sharing

b)

Accept

c)

Reduce

d)

Avoid