WorksheetsQuiz - Chapter 2 INS200
Total questions: 11
Worksheet time: 15mins
Name
Class
Date
1.
What is the primary objective of risk management?
a)
To eliminate all risks
b)
To reduce the negative impact of risks
c)
To maximize organizational profit
d)
To create new risks
2.
Risk (a) is defined as a systematic approach to identifying, measuring, and controlling risks that can threaten assets and earnings.
3.
Which of the following is a pre-loss objective of risk management?
a)
Social responsibility
b)
Survival of the organization
c)
Reduce fear and worry
d)
Stability of earnings
4.
Which method of risk management is most suitable for dealing with catastrophic risks?
a)
Risk avoidance
b)
Risk retention
c)
Risk transfer
d)
Risk acceptance
5.
(a) involves distributing a firm’s assets across multiple locations to reduce loss impact.
6.
Which of the following is NOT a risk identification technique?
a)
Physical inspection
b)
Hazard and Operability Study (HAZOP)
c)
Risk retention
d)
Checklist
7.
Risk (a) is a qualitative and quantitative evaluation to assess the risks posed to human health or the environment.
8.
Which risk management technique involves setting aside funds to cover potential losses?
a)
Risk acceptance
b)
Risk transfer
c)
Risk avoidance
d)
Risk retention
9.
What is the most effective way to manage risks that cannot be avoided?
a)
Risk retention
b)
Risk elimination
c)
Risk transfer
d)
Risk creation
10.
Analyze the differences between risk retention and risk transfer and explain when each method is preferable.
4 lines
11.
Explain the concept of risk financing and its importance in risk management.
4 lines
100 %
