__ is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.
(a) Loss
(b) Profit
(c) Risk
(d) Uncertainty
In static risk __
(a) Losses cannot be predicted
(b) Losses can be predicted
(c) Losses are not easily predictable
Relative variation of actual loss from expected loss is called __
(a) Subjective risk
(b) Objective risk
(c) Actual loss
(d) Expected loss
Risk evaluation is broken down into two parts. They are:
(a) Probability of loss occurring and its severity
(b) Risk calculation and risk analysis
(c) Loss calculation and avoidance
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Risk is measurable __
(a) Loss
(b) Profit
(c) Uncertainty
__ is planned retention by which the firm retains the part or full of the exposure arising from a risk factor.
(a) Reinsurance
(b) Self-insurance
(c) Risk financing
A risk which can be measured using a numerical scale is known as
(a) Quantifiable risk
(b) Static risk
(c) Dynamic risk
(d) Speculative risk
__ Refers to a situation where the outcome is not certain
(a) Uncertainty
(b) Loss
(c) Insurance
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Which of the following is the method of risk identification?
(a) Insurance
(b) Standard deviation method
(c) Checklist method
Spreading of risk, otherwise termed as __
(a) Shifting of risk
(b) Acceptance of risk
(c) Reduction of risk
(d) Spreading of risk
__ is concerned with converting a firm’s assets and earning power against the risk of accidental loss.
(a) Risk retention
(b) Risk management
(c) Risk control
(d) Risk identification
If any risk is concerned with financial loss, it is termed as __
(a) Business risk
(b) Business loss
(c) Financial risk
(d) Insurable claim
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__ is the process of reducing the frequency and severe losses.
(a) Loss prevention
(b) Loss Control
(c) Avoidance of risk
__ another name of fundamental risk
(a) Systematic risk
(b) Interest rate risk
(c) Group risk
(d) Loss
Pure risk situations are those where there is a possibility of __
(a) Loss or no loss
(b) Loss
(c) Variation
Willingness to retain the whole or part of a given risk is called __
(a) Risk retention
(b) Risk carrying
(c) Risk bearing
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Speculative risk is a situation in which __ is possible
(a) Loss
(b) Profit
(c) Either a profit or loss
The annual maintenance contract for computers is __
(a) Risk avoidance
(b) Loss Reduction
(c) Insurance
(d) Transfer of risk by contract
