Question

A. ERM decisions are ang Answer: ted. 13. For what primary reason could enterprises B. Financi 10. A risk manager in an organisation is evaluating a risk and multiplies the probability of the risk occurring with the potential impact. The result of the calculation is the production of a risk Answer: A. appetite. B control. C. factor D matrix Page 6 11. A train has crashed and is badly damaged. There have been numerous claims from injured passengers as well as a loss of revenue for the train operator. This is an example of Answer: A. risk aggregation. b risk categorisation. .C. risk probability D. risk severity. 12. A large manufacturing organisation has renewed an insurance policy and has accepted a significant increase in the policy deductible. What is this most likely to indicate? Answer: A Decreased risk avoidance. B. Decreased risk tolerance. . Increased risk elimination. D. Increased risk retention.

Answer 1

Answers are indicated through bold ,underlined and capital letters   10)A risk manager in an organization is evaluating a risk & multiplies the probability of the risk occurring with the potential impact. The result of the calculation is the production of risk MATRIX. 11) A train has crashed and is badly damaged there have been a numerous claims from injured passengers as well as a loss of revenue for the train operator this is an example of RISK SEVERITY. 12) A large manufacturing organization has renewed an insurance policy and has accepted a significant increase in policy deductible. What is this most likely to indicate INCREASED RISK RETENTION.

Answer 2

Increase risk elimination