The document discusses various concepts related to risk management including: - Moral hazard refers to deliberately causing a loss to collect insurance money. - Static risks are risks that are not affected by economic conditions. - Risk is an uncertain event that could positively or negatively impact project objectives. - Risk tolerance refers to an organization's willingness to take on risk to achieve its objectives. - Risk management involves identifying, assessing, and prioritizing risks. - Mitigation involves reducing the probability and impact of risks. - A workaround is an unplanned response to an unexpected risk. - Passive acceptance means tolerating a risk in an unplanned manner if no action is feasible

2. Conditions that increases the severity
of loss :

3. Hazards

4. Putting fire to your own factory is an
example of _______ hazard.

5. Moral Hazard

6. ________risk is not at all affected by the
economic conditions.

7. Static Risks

8. An uncertain event or condition that, if
it occurs, has a positive or negative
effect on a project objectives is termed
______ .

9. Risk

10. Property Risk is one of the type of
______ .

11. Pure Risks

12. Organization’s readiness to bear the risk
to achieve its objective :

13. Risk Tolerance

14. Identification, assessment and
prioritization of risks is known as :

15. Risk Management

16. One of the tools of risk handling to
reduce the probability and impact of
risk :

17. Mitigation of Risk

18. Unplanned responses to unexpected
risk :

19. Workaround

20. Acceptance of risk in an unplanned
manner if no action is feasible :

21. Passive Acceptance

22. A list of questions that address traditional
areas of uncertainty on a project is termed a
risk _______ .

23. Profile

24. Which of the following is not one of the steps
in the risk management process?
a. Risk response development
b. Risk assessment
c. Risk identification
d. Risk tracking
e. Risk response control

25. d. Risk Tracking

26. Q. A risk profile is a list of questions that
address traditional areas of uncertainty on a
project that answers developed from:
a. When the event might occur in the project
b. Chances of the event occurring
c. Interaction with other parts of the project
or with other projects
d. From previous, similar projects
e.Magnitude or severity of the event's impact

27. d. From previous, similar projects

28. The risk assessment form contains all of the
following except
a. Likelihood of the risk event occurring
b. Potential impact of the risk event
c. Who will detect the occurrence of the risk
event.
d. Difficulty of detecting the occurrence of
the risk event
e. When the risk event may occur

29. c. Who will detect the occurrence
of the risk event

30. Q. Technical risks are:
a. Often the kind that can cause the project to
be shut down.
b. Problematic
c. Imposed duration dates
d. Both A and B are correct
e. A, B, and C are all correct

31. d. Both A and B are correct

32. Detailing all identified risks, including
descriptions, category, and probability of
occurring, impact, responses,
contingency plans, owners and current
status is called:

33. Risk Register

34. Q. During which stage of risk planning are
risks prioritized based on probability and
impact?
a) Perform Qualitative Risk Analysis
b) Monitor and Control Risks
c) Plan Risk Management
d) Identify Risks

35. a. Perform Qualitative Risk
Analysis

36. Q. Your project has met with an unexpected problem.
The supply of a critical component of your final
product is delayed by 25 days. You need to show an
alpha prototype of the product in 15 days. You’ve called
a brainstorming team meeting to determine if you can
deliver this limited version without the critical
component. What are you trying to create?
a. A risk management plan
b. A risk mitigation strategy
c. A workaround
d. An updated scope baseline

37. c. A workaround

38. Q. Which of the following processes has the
Risk Register as the primary output?
a. Perform Qualitative Risk Analysis
b. Monitor and Control Risks
c. Plan Risk Management
d. Identify Risks

39. d. Identify Risks

40. Q.Why is a large number of exposure units required for a
risk to be insurable?
a. It allows the insurer to more accurately predict the
expected dollar amount of loss and calculate a pure
risk premium
b. It allows for at least some losses to occur
c. It reduces the moral hazard
d. It guarantees the insurer will make money
e. It permits cross subsidization from the lower premium
insures to those higher premium paying policyholders
with larger losses

41. c. It reduces the moral hazard

42. Q. The definition of peril is:
a. The actual cause of loss
b. The uncertainty concerning loss
c. A measure of the accuracy with which a loss
can be predicted
d. the first cause in an unbroken chain of
events

43. a. The actual cause of loss

44. Q. The moral hazard is:
a. A loss of faith in the insurer because of a
denial of claims.
b. Illustrated by the loss of a wallet to a thief.
c. The potential for the insurer to increase
premiums after loss.
d. The increase of loss caused by attempts to
defraud the insurer .
e. The insolvency of the insurance company
due to lapses in judgement from the CEO

45. a. A loss of faith in the insurer
because of a denial of claims.

46. Q. A pure risk is one where:
a. The result can only be a loss or no loss
b. The result can be a gain or loss
c. The result can be only a gain or no gain
d. The result can not be predicted
e. The result is subject to chance

47. a. The result can only be a loss or
no loss

48. Q. The criteria for ideally insurable losses
include all of the following EXCEPT:
a. Losses definite in time.
b. Accidental Losses.
c. A small carefully defined group of
exposures.
d. A large number of homogeneous risks .
e. low probability of catastrophic loss

49. b. Accidental Losses.

50. Q. A risk where the frequency of loss is low and
the severity of loss is high represents a case
where which risk management tool should be
used:
a. Risk assumption
b. Loss prevention
c. Loss control
d. Insurance or risk transfer
e. Risk avoidance

51. c. Loss control

52. Q. The most difficult and important step in the risk
management process and one that can lead to a risk
manager being terminated if it is not conducted properly is:
a. risk identification, particularly those risks that are
foreseeable
b. finding the most costly insurer to cover all the risks that
may impact an organization
c. determining the appropriate amount of premium for
pure and speculative risks
d. covering all the firm's financial risks using derivative
contracts
e. hiring a highly trained accountant to create a tax-
sheltered captive within the organization to allow
management to take vacations in Bermuda

53. d. covering all the firm's financial
risks using derivative contracts

54. Q. Risk managers can identify potential
property losses using:
a. walking tours of the facilities and operations
subject to risk
b. checklists
c. flowcharts
d. interviews with employees
e. all of the above

55. e. all of the above

56. Q. According to Maylor, what are traditionally
the core three risk categories?
a. Cost, schedule, and quality
b. Environment, cost, and legal
c. Resources, schedule, and health and safety

57. a. Cost, schedule, and quality

58. Q. What are the three stages of cyclical risk
management?
A. Identification, quantification and
prioritisation
B. Identification, analysis, and monitoring
and control
C. Analysis, mitigation, and control

59. b. Identification, analysis, and
monitoring and control

60. Which of the following are advantages of
using quantitative methods of risk analysis?
a. Less time-consuming
b. More precise
c. Less reliance on software

61. b. More precise

62. Q. What is Opportunities Management?
a. The management of any identified risk
once it occurs
b. The management of positive risks
c. A new school of thought that treats the
emergence of any risk as an opportunity to
re-work the project

63. b. The management of positive
risks

64. THANK YOU!!