Risk Management

Business

Quiz 4 :

Evolving Risk Management: Fundamental Tools

Quiz 4 :

Evolving Risk Management: Fundamental Tools

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Holistic risk mapping is the outcome of risk profiling.
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True False
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True

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In a small company or sole proprietorship, the owner usually hires one experienced risk manager to perform the risk management function.
Free
True False
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False

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If the firm is organized as a sole proprietorship, the proprietor's personal assets are separable from those of the firm because the firm is a separate legal entity.
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True False
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False

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IT system failures and intellectual property violation risks fall under hazard risks.
True False
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Risk retention groups are similar to group self-insurance.
True False
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Risk management is a continuous process requiring constant monitoring of the program.
True False
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Like sole proprietorship, general partnership assumes unlimited liability for the firm's obligations.
True False
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Risk solutions are only as good as their underlying assumptions.
True False
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Because a sole proprietorship is a separate legal entity, investors who wish to limit possible losses connected with a particular venture may create a sole proprietorship and transfer such risks to it.
True False
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When we focus on only one risk, we work with the risk management matrix.
True False
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When a business creates a subsidiary to handle the risk exposures, the business creates a captive.
True False
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The first step in mapping risk is to identify the firm's loss exposures and estimate and forecast the frequency and severity of each potential risk.
True False
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Both loss prevention and loss reduction techniques reduce the probability of loss.
True False
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A firm's data warehousing of risk data allows decision makers to evaluate multiple dimensions of risks, but not overall risk.
True False
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Risks cannot be segregated-they interact and affect one another.
True False
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In times of high insurance prices, the likelihood of using risk transfer is greater than in times of high rates.
True False
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Risk mapping involves charting individual risk "silos" from each separate business unit.
True False
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Insurance is a common form of planned risk retention as a financing technique for individuals and most organizations.
True False
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This is a visual tool used to consider alternatives of the risk management tool set.It forms a grid of frequency and severity intersection points of each identified and measured risk.Identify the topic of discussion.
Multiple Choice
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Loss reduction efforts seek to reduce the probability of a loss occurring.
True False
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Showing 1 - 20 of 73