1. The premium implies ______________
a) Consideration by Service
b) Consideration by cash
c) Consideration by Kind
d) Speculative Cash
2. A risk manager should report to ______________
a) Managing Director
b) Company Secretary
c) Supervisor
d) General Manager
3. The Risk Evaluation breaks into two parts.They are ______________
a) The cause of loss and its affects
b) The probability of loss occurring and its severity
c) The loss due to any reasons
d) The risk and return
4. The condition for insurable interest is ______________.
a) Loss should be sufficiently in monetary terms
b) Loss potential should be sufficiently large
c) Interest on the subject matter of the insurance
d) Loss cannot be managed
5. Having money available when it is needed is defined as the art of ______________.
a) Financial management
b) Risk management
c) Contingency fund
d) Surplus
6. Risk management is concerned with ______________.
a) Planning
b) Arranging and controlling of activities
c) Managing of funds
d) Planning, arranging and controlling of activities
7. In alike the risk of creditors and shareholders by High Capital Gearing ratio companies is
______________.
a) Increased
b) Decreased
c) Government
d) Management and Employees
8. That which are not independent parts of the whole risk management process are ______________.
a) Risk Control and Risk Financing
b) Risk Retention and Risk Analysis
c) Risk Retention and Risk Financing
d) Risk Analysis and Risk Control
9. That which helps to determine the accuracy and relevance of risk at each stage to which an
organization is exposed is known as ______________.
a) Principle of Identification
b) Principle of Risk Analysis
c) Principle of Assessment Risk
d) Principle of Corrective Decision
10. The cost of increased precautions and limits on risky activity to reduce the frequency and severity of
accidents and losses is covered by ______________.
a) Cost of Loss Financing
b) Cost of Expected Losses
c) Cost of Control of Loss
d) Cost of Internal Risk Reduction