AINS 21 SC A7 EXAM QUESTIONS WITH
CORRECT ANSWERS 2025/2026 A+
GRADED 100% VERIFIED
All risk management processes are designed to assess, control, and finance risk.
True
False - ANS- True
Which one of the following is the goal of enterprise-wide risk management (ERM)?
Select one:
A. Decentralize control of business decisions
B. Reduce risk management costs
C. Maximize the organization's value
D. Coordinate loss reduction efforts - ANS- C. Maximize the organization's value
Which one of the following is true regarding enterprise-wide risk management (ERM)?
Select one:
A. ERM is an approach to risk management that focuses primarily on loss exposures
associated with pure risk.
B. ERM is an approach to managing all of an organization's key risks and opportunities.
C. Implementation of ERM is fairly consistent among organizations, regardless of their
size, nature, or complexity.
D. In practice, implementation of ERM occurs at the departmental or business unit level. -
ANS- B. ERM is an approach to managing all of an organization's key risks and
opportunities.
Traditionally, the risk management professional's role has been associated with loss
exposures related to
Select one:
A. Pure risk.
B. Operational risk.
C. Speculative risk.
D. Business risk. - ANS- A. Pure risk.
Wanlett Enterprises has a risk manager who is charged with making sure the
organization has the necessary property and liability insurance policies in place to
respond to hazard risks that were identified over twenty years ago. Wanlett still creates
, and manufactures the same products it did decades ago. Which one of the following is
true given this scenario?
Select one:
A. Wanlett's risk management efforts are intended to maximize the organization's value.
B. Wanlett shows it wants the risk management process to occur at the enterprise level.
C. Wanlett is mostly concerned with pure, as opposed to speculative risks.
D. Wanlett is managing all its loss exposures that arise from speculative risk. - ANS- C.
Wanlett is mostly concerned with pure, as opposed to speculative risks.
Risk management concepts in one form or another apply
Select one:
A. Only to international companies.
B. Only to large companies.
C. To all companies and families.
D. To all companies but not families. - ANS- C. To all companies and families.
An insurer wants to identify all of the potential loss exposures at a customer's business.
Which one of the following is the most straightforward method of identifying the
business's loss exposures?
a. Analyzing data sent to the insurer through smart devices and sensors
b. Physically inspecting the operation
c. Conducting a loss exposure survey of the operation
d. Performing a loss history analysis - ANS- b. Physically inspecting the operation
The most straightforward method of identifying loss exposures is to physically inspect
all locations, operations, maintenance routines, safety practices, work processes, and
other activities in which a household or an organization is involved.
Which one of the following describes what a risk manager for an organization usually
does when he or she obtains a completed loss exposure survey?
a. The risk manager usually trusts that the survey identifies all of the organization's loss
exposures.
b. The risk manager usually discusses the survey with managers and other employees
to gain a better understanding of the organization's operations and risk exposures.
c. The risk manager usually files the survey for future reference and depends more
heavily on the organization's loss history analysis to identify its loss exposures.
d. The risk manager usually disregards the completed survey and identifies the
organization's loss exposures based on personal observations. - ANS- b. The risk
manager usually discusses the survey with managers and other employees to gain a
better understanding of the organization's operations and risk exposures.
The first step in the risk management process is to
Select one:
A. Implement the selected technique.
B. Analyze loss exposures.
CORRECT ANSWERS 2025/2026 A+
GRADED 100% VERIFIED
All risk management processes are designed to assess, control, and finance risk.
True
False - ANS- True
Which one of the following is the goal of enterprise-wide risk management (ERM)?
Select one:
A. Decentralize control of business decisions
B. Reduce risk management costs
C. Maximize the organization's value
D. Coordinate loss reduction efforts - ANS- C. Maximize the organization's value
Which one of the following is true regarding enterprise-wide risk management (ERM)?
Select one:
A. ERM is an approach to risk management that focuses primarily on loss exposures
associated with pure risk.
B. ERM is an approach to managing all of an organization's key risks and opportunities.
C. Implementation of ERM is fairly consistent among organizations, regardless of their
size, nature, or complexity.
D. In practice, implementation of ERM occurs at the departmental or business unit level. -
ANS- B. ERM is an approach to managing all of an organization's key risks and
opportunities.
Traditionally, the risk management professional's role has been associated with loss
exposures related to
Select one:
A. Pure risk.
B. Operational risk.
C. Speculative risk.
D. Business risk. - ANS- A. Pure risk.
Wanlett Enterprises has a risk manager who is charged with making sure the
organization has the necessary property and liability insurance policies in place to
respond to hazard risks that were identified over twenty years ago. Wanlett still creates
, and manufactures the same products it did decades ago. Which one of the following is
true given this scenario?
Select one:
A. Wanlett's risk management efforts are intended to maximize the organization's value.
B. Wanlett shows it wants the risk management process to occur at the enterprise level.
C. Wanlett is mostly concerned with pure, as opposed to speculative risks.
D. Wanlett is managing all its loss exposures that arise from speculative risk. - ANS- C.
Wanlett is mostly concerned with pure, as opposed to speculative risks.
Risk management concepts in one form or another apply
Select one:
A. Only to international companies.
B. Only to large companies.
C. To all companies and families.
D. To all companies but not families. - ANS- C. To all companies and families.
An insurer wants to identify all of the potential loss exposures at a customer's business.
Which one of the following is the most straightforward method of identifying the
business's loss exposures?
a. Analyzing data sent to the insurer through smart devices and sensors
b. Physically inspecting the operation
c. Conducting a loss exposure survey of the operation
d. Performing a loss history analysis - ANS- b. Physically inspecting the operation
The most straightforward method of identifying loss exposures is to physically inspect
all locations, operations, maintenance routines, safety practices, work processes, and
other activities in which a household or an organization is involved.
Which one of the following describes what a risk manager for an organization usually
does when he or she obtains a completed loss exposure survey?
a. The risk manager usually trusts that the survey identifies all of the organization's loss
exposures.
b. The risk manager usually discusses the survey with managers and other employees
to gain a better understanding of the organization's operations and risk exposures.
c. The risk manager usually files the survey for future reference and depends more
heavily on the organization's loss history analysis to identify its loss exposures.
d. The risk manager usually disregards the completed survey and identifies the
organization's loss exposures based on personal observations. - ANS- b. The risk
manager usually discusses the survey with managers and other employees to gain a
better understanding of the organization's operations and risk exposures.
The first step in the risk management process is to
Select one:
A. Implement the selected technique.
B. Analyze loss exposures.
