INS 3533 - RISK MANAGEMENT

What is the definition of risk management?

• A method to increase profits

• A way to avoid all losses

• A systematic approach to identifying, measuring, and controlling risk

• A strategy for marketing

What is one of the objectives of risk management before a loss occurs?

• To expand product lines

• To enhance employee satisfaction

• To reduce the impact of loss

• To increase the company's market share

Which of the following is NOT a method of handling risk?

• Control

• Avoidance

• Investment

• Transfer

What is the first step in the risk management process?

• Evaluating potential losses

• Identifying potential risks

• Implementing the program

• Controlling the program

What does risk retention involve?

• Eliminating all risks

• Accepting risks at an acceptable level

• Transferring risks to another party

• Sharing risks with others

What is the purpose of a risk matrix?

• To assess employee performance

• To classify various loss exposures

• To manage marketing strategies

• To calculate profits

Which of the following is a method of risk transfer?

• Risk avoidance

• Loss prevention

• Risk control

• Insurance contract

What is the main goal of risk management?

• To maximize losses

• To increase employee turnover

• To enable an organization to progress towards its goals

• To eliminate all risks

What is one of the objectives of risk management after a loss occurs?

• To ensure the organization can continue operations

• To reduce product prices

• To increase the number of employees

• To expand into new markets

Which of the following is a technique for identifying loss exposures?

• Hiring more staff

• Increasing marketing efforts

• Conducting questionnaires

• Reducing prices