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CISR RISK MANAGEMENT EXAM ACTUAL EXAM 200
QUESTIOS AND CORECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |AGRADE
TCOR .....ANSWER.....Total Cost of Risk
Risk Management .....ANSWER.....the process of managing
uncertainty of exposures that affect an organizations assets
5 steps of risk management process .....ANSWER.....Identification,
analysis, control, financing and administration
Six general classes of risk .....ANSWER.....1. Economic
2. Legal
3. Political
4. Social
5. Physical
6. Juridical
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Four Logical Classifications of Exposures .....ANSWER.....A.
Property
B. Human Resources
C. Liability
D. Net Income
Ways to identify risks .....ANSWER.....Checklists, surveys,
flowcharts, Insurance policy reviews, physical inspections,
compliance reviews, contract reviews, experts, loss data analysis
and financial statement review
7 Benefits of risk management .....ANSWER.....Identify Exposures,
Improve budgeting & planning, determine risk appetite, allocate
cost of risk, adds value, mitigate losses and integrates risk control
& safety
Risk Identification .....ANSWER.....the most important step of the
risk management process.
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Collecting and analyzing data .....ANSWER.....•helps an
organization identify and understand the potential impact of
losses,
•helps the organization address product/service development
and pricing,
•helps the risk manager in working with the organization's
insurance programs, and
•provides the foundation on which the organization calculates its
cost of risk.
Qualitative analysis .....ANSWER.....the "what" analysis process, in
other words, the identification and evaluation of loss exposures
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that cannot be easily measured by traditional statistical or
financial methods.
Quantitative analysis .....ANSWER.....the "how much" analysis,
which attempts to accurately measure risks by using acceptable,
traditional methodologies to calculate relative numeric values.
Loss Data Credibility .....ANSWER.....•Completeness - statistical
analysis is valid if the data set is complete.
•Consistency - comparisons are valid if the same items (apples to
apples) are used.
•Integrity - data with good integrity is reliable, accurate and
current to the time period being measured.
CISR RISK MANAGEMENT EXAM ACTUAL EXAM 200
QUESTIOS AND CORECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |AGRADE
TCOR .....ANSWER.....Total Cost of Risk
Risk Management .....ANSWER.....the process of managing
uncertainty of exposures that affect an organizations assets
5 steps of risk management process .....ANSWER.....Identification,
analysis, control, financing and administration
Six general classes of risk .....ANSWER.....1. Economic
2. Legal
3. Political
4. Social
5. Physical
6. Juridical
,Page 2 of 115
Four Logical Classifications of Exposures .....ANSWER.....A.
Property
B. Human Resources
C. Liability
D. Net Income
Ways to identify risks .....ANSWER.....Checklists, surveys,
flowcharts, Insurance policy reviews, physical inspections,
compliance reviews, contract reviews, experts, loss data analysis
and financial statement review
7 Benefits of risk management .....ANSWER.....Identify Exposures,
Improve budgeting & planning, determine risk appetite, allocate
cost of risk, adds value, mitigate losses and integrates risk control
& safety
Risk Identification .....ANSWER.....the most important step of the
risk management process.
,Page 3 of 115
Collecting and analyzing data .....ANSWER.....•helps an
organization identify and understand the potential impact of
losses,
•helps the organization address product/service development
and pricing,
•helps the risk manager in working with the organization's
insurance programs, and
•provides the foundation on which the organization calculates its
cost of risk.
Qualitative analysis .....ANSWER.....the "what" analysis process, in
other words, the identification and evaluation of loss exposures
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that cannot be easily measured by traditional statistical or
financial methods.
Quantitative analysis .....ANSWER.....the "how much" analysis,
which attempts to accurately measure risks by using acceptable,
traditional methodologies to calculate relative numeric values.
Loss Data Credibility .....ANSWER.....•Completeness - statistical
analysis is valid if the data set is complete.
•Consistency - comparisons are valid if the same items (apples to
apples) are used.
•Integrity - data with good integrity is reliable, accurate and
current to the time period being measured.
