Risk management — identifying, measuring and treating risk, and the enterprise risk management framework.
These are 5 of the 553 IC-86 questions in Certena, taken from across the paper. Every answer key has been checked against a source — a printed answer key, a textbook extract, or arithmetic — not guessed. Reveal the answer and the explanation below each question. No sign-up needed.
Answer: D. Both 1 and 3
During the Emergency Response Phase, the management will : 1. Assess the situation and 2. Decide if and when to activate BCP (Business Continuity Plan) ( Restarting essential operation is a part of Recovery Phase)
Answer: D. Risk Control
Requiring the drivers to do and pass the driver safety course is an example of Risk Control. It would fall under education and training under which an individual or group is trained to respond in a correct way so as to control a loss situation and thus contribute to the minimise the amount of ensuing loss.
Answer: B. Only 3
Heavy monsoon floods are a naturally occurring event causing physical damage, which places this squarely under physical risk, matching option 2 (Only 3, i.e. "Only Physical Risk"). It is not a market risk (concerned with price/economic factors) or purely a social risk (concerned with group/societal behaviour), since the direct cause here is a natural weather event.
Answer: A. Only II
Finite risk reinsurance products are specifically designed to combine the benefits of both risk transfer and risk financing within a single structured product, matching option 1 (Only II). "Average risk insurance" and "weighted risk insurance" are not standard, recognised product categories in the way finite risk reinsurance is.
Answer: B. Identify the risk
The risk management process must logically begin by identifying the risk, since an organisation cannot assess, budget for, or set acceptable levels for a risk it has not yet recognised exists, matching option 2. Appointing a risk manager or setting a budget are important supporting steps, but they follow after the risks themselves have first been identified.
548 more verified IC-86 questions, timed 100-question mock papers, and your weak areas are in the app — create a free account.
All 553 verified IC-86 questions, timed mock papers and spaced repetition. Free to start — no payment required for practice questions.
Start Free Practice →