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WorksheetsRisk Management
Total questions: 46
Worksheet time: 25mins
The technique of assessing, minimizing, and preventing
accidental loss to a business, as through the use of insurance, safety measures, etc.
accidental loss insurance
business management
risk management
auto insurance
Insurance companies provide us with that intangible security against financial loss, should we face injury, illness, damage of property, or even death.
True
False
A formal request to an insurance company asking for a payment based on the terms of the insurance policy.
Policy
Claim
Risk
Premium
The total amount and type of insurance carried.
Claim
Deductible
Coverage
Insurer
A specified amount of money that the insured must pay before an insurance company will pay a claim.
Allowance
Loan
Premium
Deductible
The state of being responsible for something, especially by law.
Ownership
Liability
Coverage
Claim
The person, group, or property for which an insurance policy is issued. The condition of having insurance.
Insured
Insurer
Homeowner
What is risk management?
Looking both ways before crossing a 2 lane highway.
Auto Insurance
The forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact.
The ability to plan for the future.
What are some risk management devices ?
Saving money in an savings account.
Auto, health, and life insurance.
Applying for a passport.
Co-signing for a loan.
If you are employed, what are some risk management products a job may offer?
Workers compensation
Health Insurance
Disability Insurance
Unemployment insurance
All of the above
In case of a future emergency, what standard is widely recommended ?
Make sure you have two credit cards.
Apply for a loan from your bank or credit union.
Have at least 6 months worth of work income saved in a emergency savings account.
None of the above
What are the main two types of life insurance ?
Whole life and half life.
Term and Whole life.
There is only one type of life insurance.
Term and Partial life.
What is term life insurance.
Term Life insurance last your whole entire life.
Term Life insurance provides coverage for a fixed amount of time.
Term life is the same as whole life insurance.
Term life is another way of saying whole life.
What products are used for retirement planning ?
IRA
401 K
403 B
All of the above
How can you avoid running out of money during your retirement years ?
Cash flow from real estate investments..
Employment Pension plans and IRA.
Social Security monthly payments
All of the above.
Strategies typically used to deal with threats or risks that may have negative impacts on project objectives if they occur include all of the following EXCEPT:
Interpreting
Avoiding
Transferring
Mitigating
Risk transference nearly always involves:
Eliminating risk through beta testing.
Policies and procedures for a response system.
Accepting a lower profit if some activities overrun their budget.
Payment of a risk premium to the party taking on the risk.
All of the following are inputs to the Identify Risks process EXCEPT:
Risk management plan.
Scope baseline.
Risk mitigation plan.
Quality management plan.
Outputs from the Plan Risk Responses process include all of the following EXCEPT:
Change requests.
Corrective actions.
Project documents updates.
Project management plan updates.
Insurance can help you manage ___________
Risk
Financial loss due to risk
Both of the above
Neither of the above
Financial risks can be caused by _______.
Accidents
Disability
Lawsuits
Any of the above
There are many ways to manage risks in your financial life. For example, not taking any steps at all to reduce the risk of financial loss is called _______.
Assuming risk
Avoiding Risk
Sharing Risk
Transferring Risk
The more risk you transfer to an insurance company, the _______ your premiums will be.
Lower
Higher
Anything _______ that has an adverse effect on your financial goals is financial risk.
Expected
Unexpected
Expected or unexpected
If you live in an apartment, what form of insurance would cover your belongings?
Homeowner's insurance
Renter's insurance
Life Insurance
Health Insurance
Which of the following is a way to manage risk?
Assume risk
Avoid Risk
Share Risk
All of the above
Before buying an insurance policy, you should determine _______.
How much coverage you should buy
How much you want to spend on premiums
How much of the risk you can assume yourself
An insurance deductible amount is an example of _______.
Assuming risk
Avoiding risk
Sharing risk
Transferring risk
Liability insurance would cover a situation where another person sued you.
True
False
Insurance is used to manage what?
Wealth
Accidents
Financial risk
All risks
Financial risk is necessary because sometimes greater financial risk equals which of the following?
A. Less risk of other types
B. Greater products and services
C. Better management
D. Greater financial reward
Martha opened a movie rental store a few years ago, and due to new, more convenient movie rental options, her business is failing. This is an example of a business owner failing due to which type of risk?
A. Natural risk
B. Financial risk
C. Economic Risk
D. Human risk
Which category of risk can be predicted and occur when there is a change of either a profit or loss?
A. Pure risks B. Speculative risks C. Controllable risks D. Uncontrollable risks
B. Speculative risks
C. Controllable risks
D. Uncontrollable risks
What percentage of businesses which close because of a natural disaster or incident never re-open?
A. At least one-fourth
B. At least one-third
C. At most one-fifth
D. At most one-tenth
Which of the following is the risk identification method which combines all of the other methods and creates an in-depth look at potential risks?
A. Objective-base
B. Scenario-based
C. Taxonomy-based
D. Risk charting
Risks can be assessed by which of the following equations?
B. Risk = nature + finances + economy + humans
C. Risk = probability x impact
D. Risk = uncertainty ÷ preparation
Problem analysis identifies which of the following?
A. The potential target of a risk
B. The effect of a risk
C. Whether the risk is internal or external
D. How to avoid a risk
Which of the following is an example of risk avoidance?
A. Purchasing insurance policies
B. Installing security cameras
C. Training employees
D. Running a background check on employees
Which technique for dealing with risk is generally used when the known loss of a risk will be extremely small?
A. Risk transfer
B. Risk reduction
C. Risk retention
D. Risk avoidance
Which of the following is NOT one of the four types of risk?
A. Natural
B. Political
C. Human
D. Economic
Which of the following is NOT one of the four risk management techniques?
A. Risk transfer
B. Risk evasion
C. Risk reduction
D. Risk retention
Installing security cameras is an example of which risk management technique?
A. Risk transfer
B. Risk evasion
C. Risk reduction
D. Risk retention
When are business risks generally greatest for a business?
When experiencing an anniversary
During the holiday seasons
When a business first begins operation
During the summer months
Risk identification involves source analysis and __________ analysis.
Objective
Scenario
Problem
Result
Risk identification which breaks down and groups risks into categories based on previous experience and knowledge is known as which of the following?
Risk charting
Common-risk checking
Objective-based
Taxonomy-based
You should review your risk management techniques every year.
True
False
