AIDA 182 ACTUAL EXAM 2024 REAL 200
QUESTIONS AND CORRECT DETAILED
ANSWERS|GRADED A+
Risk quadrants are different from risk classifications. Risk quadrants focus on
what? - ANSWER---The source of the risk itself and what part of the organization
has managed it in the past.
An enterprise risk management approach is categorizing risks into quadrants. What
are hazard risks? - ANSWER---Normally managed by risk management
professionals.
What are the four risks in the enterprise risk management model? - ANSWER---
Hazard, operational, financial, and hazard.
What risk quadrant is the change of stocks or bonds values because interest rate
changes in? - ANSWER---Financial risks.
What is true of pure and speculative risks? - ANSWER---All businesses involve
speculative risks.
What is true of diversifiable and nondiversifiable risks? - ANSWER---Systemic
risks are nondiversifiable generally.
What is an example of a strategic risk? - ANSWER---A new computer chip that
could give a company growth.
What is an example of an operational risk? - ANSWER---The ability of suppliers
to perform.
, AIDA 182 ACTUAL EXAM 2024 REAL 200
QUESTIONS AND CORRECT DETAILED
ANSWERS|GRADED A+
What is true of subjective and objective risks? - ANSWER---Subjective risk can be
present where objective risk is not.
What is an example of a speculative risk? - ANSWER---Investing in stock.
What is true of diversifiable versus nondiversifiable risk? - ANSWER---
Diversifiable risks are not correlated and can be managed through diversification
or spread of risk.
A company's fleet of cars is worrying the managers liquidity of the company and
fuel prices having an adverse effect is which type of risk quadrant? - ANSWER---
Financial risk.
An employee embezzling funds from a company for not feeling adequately paid is
what risk? - ANSWER---Both a hazard and an operational risk.
Failing to respond to changing customer demands is an example of what risk? -
ANSWER---Strategic risk.
The fear of your home being hit by a storm and damaged or destroyed is what risk
for you? - ANSWER---A subjective risk.
What quadrant of risk is a harmful chemical found in a building with unknown
harm to residents and to the clean up crew part of? - ANSWER---A hazard risk.
, AIDA 182 ACTUAL EXAM 2024 REAL 200
QUESTIONS AND CORRECT DETAILED
ANSWERS|GRADED A+
Driving instead of flying because of feeling of safety is an example of what? -
ANSWER---A subjective risk.
Investing money in a rental property brings what? - ANSWER---Both speculative
and pure risks. The property values can increase or decrease and the building could
burn down.
Increased competition is an example of what? - ANSWER---A strategic risk.
Renovating a warehouse, purchasing a new order processing software, added two
new delivery trucks, and purchasing a production machine which also allows for
potential for a new product line, are all projects. Which project is the most
speculative? - ANSWER---The new production machine.
What is a true statement on the basic measures applying to risk management? -
ANSWER---Consequences measure the degree to which an occurrence could
positively or negatively affect an organization.
The law of large numbers states as the number of exposure units increases, what
happens? - ANSWER---The relative accuracy of predictions about future losses
increase.
Which two measures are important in assessing risk and how to manage it? -
ANSWER---Consequences and likelihood.
QUESTIONS AND CORRECT DETAILED
ANSWERS|GRADED A+
Risk quadrants are different from risk classifications. Risk quadrants focus on
what? - ANSWER---The source of the risk itself and what part of the organization
has managed it in the past.
An enterprise risk management approach is categorizing risks into quadrants. What
are hazard risks? - ANSWER---Normally managed by risk management
professionals.
What are the four risks in the enterprise risk management model? - ANSWER---
Hazard, operational, financial, and hazard.
What risk quadrant is the change of stocks or bonds values because interest rate
changes in? - ANSWER---Financial risks.
What is true of pure and speculative risks? - ANSWER---All businesses involve
speculative risks.
What is true of diversifiable and nondiversifiable risks? - ANSWER---Systemic
risks are nondiversifiable generally.
What is an example of a strategic risk? - ANSWER---A new computer chip that
could give a company growth.
What is an example of an operational risk? - ANSWER---The ability of suppliers
to perform.
, AIDA 182 ACTUAL EXAM 2024 REAL 200
QUESTIONS AND CORRECT DETAILED
ANSWERS|GRADED A+
What is true of subjective and objective risks? - ANSWER---Subjective risk can be
present where objective risk is not.
What is an example of a speculative risk? - ANSWER---Investing in stock.
What is true of diversifiable versus nondiversifiable risk? - ANSWER---
Diversifiable risks are not correlated and can be managed through diversification
or spread of risk.
A company's fleet of cars is worrying the managers liquidity of the company and
fuel prices having an adverse effect is which type of risk quadrant? - ANSWER---
Financial risk.
An employee embezzling funds from a company for not feeling adequately paid is
what risk? - ANSWER---Both a hazard and an operational risk.
Failing to respond to changing customer demands is an example of what risk? -
ANSWER---Strategic risk.
The fear of your home being hit by a storm and damaged or destroyed is what risk
for you? - ANSWER---A subjective risk.
What quadrant of risk is a harmful chemical found in a building with unknown
harm to residents and to the clean up crew part of? - ANSWER---A hazard risk.
, AIDA 182 ACTUAL EXAM 2024 REAL 200
QUESTIONS AND CORRECT DETAILED
ANSWERS|GRADED A+
Driving instead of flying because of feeling of safety is an example of what? -
ANSWER---A subjective risk.
Investing money in a rental property brings what? - ANSWER---Both speculative
and pure risks. The property values can increase or decrease and the building could
burn down.
Increased competition is an example of what? - ANSWER---A strategic risk.
Renovating a warehouse, purchasing a new order processing software, added two
new delivery trucks, and purchasing a production machine which also allows for
potential for a new product line, are all projects. Which project is the most
speculative? - ANSWER---The new production machine.
What is a true statement on the basic measures applying to risk management? -
ANSWER---Consequences measure the degree to which an occurrence could
positively or negatively affect an organization.
The law of large numbers states as the number of exposure units increases, what
happens? - ANSWER---The relative accuracy of predictions about future losses
increase.
Which two measures are important in assessing risk and how to manage it? -
ANSWER---Consequences and likelihood.
