ISR3701 Unit 1 & 2: Questions With Correct
Solutions
ISR3701 Unit 1 - Risk Management
Risk Correct Answer - The uncertainty of loss.
Risk Management Correct Answer - a process that identifies loss
exposures faced by an organization and selects the most appropriate
techniques for treating such exposures
Speculative risk Correct Answer - a situation in which either profit or
loss is possible.
Event Risk Correct Answer - the risk that some major, unexpected event
will occur that leads to a sudden and substantial change in the value of an
investment
examples of speculative risk Correct Answer - gambling, buying stock,
buying a home
examples of event risk Correct Answer - - Decrease in value of insurance
company stock after a major hurricane
- Decrease in value of real estate after a major earthquake
Risk Management Process Correct Answer - The method of making,
implementing, and monitoring decisions that minimize the adverse effects of
risk on an organization.
Risk Management Process Phases Correct Answer - (I) Risk
Identification
At this phase, risk is identified by looking at organizational charts, flow charts
or checklists.
(II) Risk Evaluation
Solutions
ISR3701 Unit 1 - Risk Management
Risk Correct Answer - The uncertainty of loss.
Risk Management Correct Answer - a process that identifies loss
exposures faced by an organization and selects the most appropriate
techniques for treating such exposures
Speculative risk Correct Answer - a situation in which either profit or
loss is possible.
Event Risk Correct Answer - the risk that some major, unexpected event
will occur that leads to a sudden and substantial change in the value of an
investment
examples of speculative risk Correct Answer - gambling, buying stock,
buying a home
examples of event risk Correct Answer - - Decrease in value of insurance
company stock after a major hurricane
- Decrease in value of real estate after a major earthquake
Risk Management Process Correct Answer - The method of making,
implementing, and monitoring decisions that minimize the adverse effects of
risk on an organization.
Risk Management Process Phases Correct Answer - (I) Risk
Identification
At this phase, risk is identified by looking at organizational charts, flow charts
or checklists.
(II) Risk Evaluation
