INDIVIDUAL MANAGE YOUR RISK QHS ACTUAL
EXAM PAPER 2026 QUESTIONS SOLUTIONS
GRADED A+
◉ Loss Exposures Answer: Any condition or situation that presents
a possibility of loss, regardless of whether that loss actually occurs.
3 Elements:
1) Asset exposed to loss
2) Cause of loss
3) Financial consequences of the loss
◉ 3 Elements of Loss Exposures Answer: 1) Asset exposed to loss
2) Cause of loss
3) Financial consequences to the loss
◉ Risk Management Process Answer: -Determine Objectives
-Identify Risks
-Evaluate Risks
-Choose your alternatives
-Implement
-Review & Evaluate
,◉ How do you evaluate risk? Answer: -Frequency/severity:
Death only happens once, but probability does vary
-Severity does vary based on
-Wealth
-Income
◉ What Schedule are smart drugs? Answer: Schedule II (same as
cocaine)
-Federal offense to take w/out prescription
◉ Smart Drug Stats Answer: -Prescription doubled from 07-11
-Studies estimate 25-35% of college students have used them
-3-4% of pop are ADHD, skewed towards younger children
-Users are more likely to:
Smoke weed
Skip Class
Lower GPAs
◉ Are smart drugs dangerous? Answer: Yes:
Alan Schwarz
Case on Richard Fee:
, Academic scholarship, college class president, baseball player,
aspiring med school student
-Addiction to Adderall--Committed suicide 2 years after coolege
◉ Are Smart Drugs Dangerous? Answer: No:
Joshua Gowin
No diff than other stimulants, ex: caffeine
Just more sophisticated
they work, use them
◉ Ways (categories) of looking at the risk at the organizational level
Answer: 1) Business Risk
2) Operational Risk
3) Hazard Risk
4) Financial Risk
5) Strategic Risk
◉ Operational Risk Answer: Example: BP case
Potential losses form internal sources:
manufacturing process
Fraud
Mismanagement
EXAM PAPER 2026 QUESTIONS SOLUTIONS
GRADED A+
◉ Loss Exposures Answer: Any condition or situation that presents
a possibility of loss, regardless of whether that loss actually occurs.
3 Elements:
1) Asset exposed to loss
2) Cause of loss
3) Financial consequences of the loss
◉ 3 Elements of Loss Exposures Answer: 1) Asset exposed to loss
2) Cause of loss
3) Financial consequences to the loss
◉ Risk Management Process Answer: -Determine Objectives
-Identify Risks
-Evaluate Risks
-Choose your alternatives
-Implement
-Review & Evaluate
,◉ How do you evaluate risk? Answer: -Frequency/severity:
Death only happens once, but probability does vary
-Severity does vary based on
-Wealth
-Income
◉ What Schedule are smart drugs? Answer: Schedule II (same as
cocaine)
-Federal offense to take w/out prescription
◉ Smart Drug Stats Answer: -Prescription doubled from 07-11
-Studies estimate 25-35% of college students have used them
-3-4% of pop are ADHD, skewed towards younger children
-Users are more likely to:
Smoke weed
Skip Class
Lower GPAs
◉ Are smart drugs dangerous? Answer: Yes:
Alan Schwarz
Case on Richard Fee:
, Academic scholarship, college class president, baseball player,
aspiring med school student
-Addiction to Adderall--Committed suicide 2 years after coolege
◉ Are Smart Drugs Dangerous? Answer: No:
Joshua Gowin
No diff than other stimulants, ex: caffeine
Just more sophisticated
they work, use them
◉ Ways (categories) of looking at the risk at the organizational level
Answer: 1) Business Risk
2) Operational Risk
3) Hazard Risk
4) Financial Risk
5) Strategic Risk
◉ Operational Risk Answer: Example: BP case
Potential losses form internal sources:
manufacturing process
Fraud
Mismanagement
