1. The two main ways to classify risk management techniques are: (i) pre-loss, (ii) post-loss.

Pre-loss: (i) Reduce impact of loss

(ii)Reduce fear and worry

(iii) Required by law

Post-loss: (i) Ensure survival of earningd

(ii) Produce stable earnings

(iii) Reduce impact of losses on organization and society

Select one:

True

False

2. There are four major types of personal risk, which is risk of premature death, risk of old age, risk of poor health and risk of unemployment.

Select one:

True

False

3. Fundamental risk is risk that affects entire societies or a large population within a society.

Select one:

True

False

4. Risk management derives its rules (laws) from the general knowledge of experience, through deduction, and from precepts drawn from other disciplines, particularly decision theory.

Select one:

True

False

5. The principle of indemnity is enforced to a greater extent in the property and liability field than in the health insurance field.

Select one:

True

False

6. The Objectives of having a risk management programme can be viewed from two different perspectives: (1) risk control and (2) risk financing.

Select one:

True

False

7. A hazard is anything that is likely to cause a loss, such as a fire, a windstorm, or an earthquake.

Select one:

True

False

8. Risk retention deserves serious consideration when the maximum loss potential is small.

Select one:

True

False

9. When both the potential severity and the probability of loss are high, the most appropriate techniques for dealing with the exposure are avoidance and reduction.

Select one:

True

False

10. There are three main types of loss associated with the destruction of theft of property.

(i) Direct loss.

(ii) Indirect loss.

(iii) Extra expenses.

Select one:

True

False