RMI 2302 FSU NYCE EXAM 1 QUESTIONS AND CORRECT ANSWERS
FULL SET 100% VERIFIED NEWEST!!
EVERYTHING YOU NEED IS HERE (A+ GRADED)!!!
Risk Likelihood - ANSWER Frequency - the likelihood of a loss being able to occur.
What 3 ways can Risk Likelihood be categorized - ANSWER High - an event is likely to
occur in most circumstances
Medium - an even is likely to occur in many circumstances
Low - an event may occur at sometime
Risk Impact - ANSWER Severity - the potential impact that a loss could have if it occurs.
What is a Global Risk? - ANSWER occurrence that causes significant negative impact
for several countries or industries over a time frame of up to 10 years.
Categories of Risk - ANSWER •30 Global Risks divided into 5 categories
-Economic
-Environmental
-Geopolitical
-Societal
-Technological
Risk Analysis - ANSWER •Risks analyzed along 2 parameters:
-Likelihood and impact (quantitative)
-Interdependencies (systemic)
, •# of connections
•Strength of the connections
What risks are on "Top 5" List for both likelihood & impact - ANSWER -Climate action
failure
-Biodiversity loss
-Extreme weather
Which risks have most interconnections - ANSWER -Climate action failure
Which risks have most "important" interconnections - ANSWER -Climate action failure &
extreme weather
Food and water crisis is identified as ________.
-Economic risks
-Societel risk
-Impossible to occur in modern society
-Environmental risks - ANSWER Societal risk
The following are RISK FOCI in the 2017 Global Risks Report, EXCEPT FOR:
i. Western democracy in crisis
ii. Declining civic freedoms
iii The future of social protection systems
-i Only
-ii Only
,-iii Only
-i & ii
-i, ii, & iii - ANSWER i, ii, & iii
According to figure 4, which risk identified in the Global Risks Report has the most
interconnections:
A. profound social instability
B. natural disasters (catashtropes)
C. deflation
D. pandemics (spread of infectious diseases) - ANSWER A. profound social instability
Global trends are characterized by:
I. long-term pattern that alters the relationship among risks
II. negative impact for several countries over a 10-year time frame
III. "hysteresis", or systems being unable to recover equilibrium after a shock
- I only
-II only
-III only
-I and II
-I and III
-I, II, and III - ANSWER I only: long term pattern that alters the relationship among risks
Which of the following is NOT a factor that exacerbates geopolitical risk?
, A. a decling sense of trust and mutual good faith
B. technological innovation
C. the disconnected nature of the global system
D. unilateral or transactional approaches to foreign policy - ANSWER C. the
disconnected nature of the global system
To what are risk prevention methods best applied? - ANSWER Frequency of losses
To what are risk reduction methods best applied? - ANSWER Severity of losses
Do risk reduction methods have costs that are both monetary and nonmonetary? -
ANSWER Yes. It requires putting a value on human life. (Consider how to balance
risk/reward of how much it is worth spending to save one life. What is the quality of life if
you did save them)
Derivative - ANSWER A contract between two or more parties whose value is based on
an agreed-upon underlying financial asset, index or security
Derivative - ANSWER Can be used to speculate and hedge
I, II & III - ANSWER Which of the following are true with regard to regulating derivatives?
I. Speculators often make markets work, limiting speculation will limit market success
II. Internal regulation has NOT been successful in limiting derivative risk
III. Derivatives are a global product making domestic regulation difficult
Economic activity - ANSWER Our wants and desires spur
Resources, technology, labor & capital - ANSWER Limited means include
GDP - ANSWER Total value of production using market prices
FULL SET 100% VERIFIED NEWEST!!
EVERYTHING YOU NEED IS HERE (A+ GRADED)!!!
Risk Likelihood - ANSWER Frequency - the likelihood of a loss being able to occur.
What 3 ways can Risk Likelihood be categorized - ANSWER High - an event is likely to
occur in most circumstances
Medium - an even is likely to occur in many circumstances
Low - an event may occur at sometime
Risk Impact - ANSWER Severity - the potential impact that a loss could have if it occurs.
What is a Global Risk? - ANSWER occurrence that causes significant negative impact
for several countries or industries over a time frame of up to 10 years.
Categories of Risk - ANSWER •30 Global Risks divided into 5 categories
-Economic
-Environmental
-Geopolitical
-Societal
-Technological
Risk Analysis - ANSWER •Risks analyzed along 2 parameters:
-Likelihood and impact (quantitative)
-Interdependencies (systemic)
, •# of connections
•Strength of the connections
What risks are on "Top 5" List for both likelihood & impact - ANSWER -Climate action
failure
-Biodiversity loss
-Extreme weather
Which risks have most interconnections - ANSWER -Climate action failure
Which risks have most "important" interconnections - ANSWER -Climate action failure &
extreme weather
Food and water crisis is identified as ________.
-Economic risks
-Societel risk
-Impossible to occur in modern society
-Environmental risks - ANSWER Societal risk
The following are RISK FOCI in the 2017 Global Risks Report, EXCEPT FOR:
i. Western democracy in crisis
ii. Declining civic freedoms
iii The future of social protection systems
-i Only
-ii Only
,-iii Only
-i & ii
-i, ii, & iii - ANSWER i, ii, & iii
According to figure 4, which risk identified in the Global Risks Report has the most
interconnections:
A. profound social instability
B. natural disasters (catashtropes)
C. deflation
D. pandemics (spread of infectious diseases) - ANSWER A. profound social instability
Global trends are characterized by:
I. long-term pattern that alters the relationship among risks
II. negative impact for several countries over a 10-year time frame
III. "hysteresis", or systems being unable to recover equilibrium after a shock
- I only
-II only
-III only
-I and II
-I and III
-I, II, and III - ANSWER I only: long term pattern that alters the relationship among risks
Which of the following is NOT a factor that exacerbates geopolitical risk?
, A. a decling sense of trust and mutual good faith
B. technological innovation
C. the disconnected nature of the global system
D. unilateral or transactional approaches to foreign policy - ANSWER C. the
disconnected nature of the global system
To what are risk prevention methods best applied? - ANSWER Frequency of losses
To what are risk reduction methods best applied? - ANSWER Severity of losses
Do risk reduction methods have costs that are both monetary and nonmonetary? -
ANSWER Yes. It requires putting a value on human life. (Consider how to balance
risk/reward of how much it is worth spending to save one life. What is the quality of life if
you did save them)
Derivative - ANSWER A contract between two or more parties whose value is based on
an agreed-upon underlying financial asset, index or security
Derivative - ANSWER Can be used to speculate and hedge
I, II & III - ANSWER Which of the following are true with regard to regulating derivatives?
I. Speculators often make markets work, limiting speculation will limit market success
II. Internal regulation has NOT been successful in limiting derivative risk
III. Derivatives are a global product making domestic regulation difficult
Economic activity - ANSWER Our wants and desires spur
Resources, technology, labor & capital - ANSWER Limited means include
GDP - ANSWER Total value of production using market prices
