,Exam Papers for Risk Management in BBA (With Answers)
PAPER # 1
**Duration: 2 hours**
**Instructions:**
- Answer all questions.
- Write your answers in the provided space.
- Please be concise and clear in your responses.
- The exam is closed book, and no electronic devices are allowed.
**Section A: Multiple Choice Questions (20 marks)**
1. Which of the following is NOT a type of risk in the context of risk management?
a) Market risk
b) Credit risk
c) Production risk
d) Operational risk
**Answer: c) Production risk**
2. What is the primary purpose of a Risk Assessment Matrix?
a) To quantify all risks
b) To identify and prioritize risks
c) To eliminate all risks
d) To evaluate past risks
**Answer: b) To identify and prioritize risks**
3. In the context of risk management, what does the term "Mitigation" refer to?
a) Reducing the probability of a risk occurrence
b) Transferring the risk to another party
c) Accepting the risk as it is
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, d) Ignoring the risk
**Answer: a) Reducing the probability of a risk occurrence**
4. What is a Risk Register?
a) A list of potential risks without any details
b) A detailed document outlining all project risks and their characteristics
c) A tool used for risk avoidance
d) A tool for risk acceptance
**Answer: b) A detailed document outlining all project risks and their characteristics**
5. The process of diversification is primarily used to manage which type of risk?
a) Credit risk
b) Market risk
c) Operational risk
d) Country risk
**Answer: b) Market risk**
**Section B: Short Answer Questions (20 marks)**
6. Define "Operational Risk" in the context of financial risk management. (5 marks)
**Answer: Operational Risk is the risk of loss resulting from inadequate or failed
internal processes, systems, people, or external events. This includes risks associated
with fraud, errors, disruptions, and compliance failures.**
7. List and briefly explain three strategies for managing credit risk. (5 marks)
**Answer: Three strategies for managing credit risk include credit analysis (assessing
the creditworthiness of borrowers), setting credit limits (limiting exposure to individual
borrowers), and using collateral (requiring assets as security for loans).**
8. What is the difference between quantitative and qualitative risk analysis? (5 marks)
**Answer: Quantitative risk analysis involves assigning numerical values to risks, such
as calculating the expected monetary loss. Qualitative risk analysis assesses risks
based on their subjective impact and likelihood without assigning specific values.**
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PAPER # 1
**Duration: 2 hours**
**Instructions:**
- Answer all questions.
- Write your answers in the provided space.
- Please be concise and clear in your responses.
- The exam is closed book, and no electronic devices are allowed.
**Section A: Multiple Choice Questions (20 marks)**
1. Which of the following is NOT a type of risk in the context of risk management?
a) Market risk
b) Credit risk
c) Production risk
d) Operational risk
**Answer: c) Production risk**
2. What is the primary purpose of a Risk Assessment Matrix?
a) To quantify all risks
b) To identify and prioritize risks
c) To eliminate all risks
d) To evaluate past risks
**Answer: b) To identify and prioritize risks**
3. In the context of risk management, what does the term "Mitigation" refer to?
a) Reducing the probability of a risk occurrence
b) Transferring the risk to another party
c) Accepting the risk as it is
2
, d) Ignoring the risk
**Answer: a) Reducing the probability of a risk occurrence**
4. What is a Risk Register?
a) A list of potential risks without any details
b) A detailed document outlining all project risks and their characteristics
c) A tool used for risk avoidance
d) A tool for risk acceptance
**Answer: b) A detailed document outlining all project risks and their characteristics**
5. The process of diversification is primarily used to manage which type of risk?
a) Credit risk
b) Market risk
c) Operational risk
d) Country risk
**Answer: b) Market risk**
**Section B: Short Answer Questions (20 marks)**
6. Define "Operational Risk" in the context of financial risk management. (5 marks)
**Answer: Operational Risk is the risk of loss resulting from inadequate or failed
internal processes, systems, people, or external events. This includes risks associated
with fraud, errors, disruptions, and compliance failures.**
7. List and briefly explain three strategies for managing credit risk. (5 marks)
**Answer: Three strategies for managing credit risk include credit analysis (assessing
the creditworthiness of borrowers), setting credit limits (limiting exposure to individual
borrowers), and using collateral (requiring assets as security for loans).**
8. What is the difference between quantitative and qualitative risk analysis? (5 marks)
**Answer: Quantitative risk analysis involves assigning numerical values to risks, such
as calculating the expected monetary loss. Qualitative risk analysis assesses risks
based on their subjective impact and likelihood without assigning specific values.**
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