Chapter 3

Question 1

Two risk control measures that are directly aimed at reducing the severity of net income losses are

Answer 1

separation and duplication.

Question 2

with respect to evaluating the efficiency of alternative risk control measures

Answer 2

Given a loss exposure and alternative risk control measures, the risk management professional can determine which is most efficient by using cash flow analysis.

Question 3

Business continuity management was initially developed with a focus on

Answer 3

Information Technology Concerns

Question 4

Duplication will reduce loss severity and make losses more predictable, without

Answer 4

increasing loss frequency

Question 5

Identify the risks to the organization’s critical functions

Answer 5

is one step in the business continuity process

Question 6

_________ and _______ are directly aimed at reducing the severity of net income losses

Answer 6

separation and duplication