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FIN260 Risk Management & Insurance Finals Exam(Qns & Ans) 2026
1. Which of the following is a primary objective of risk
management in an organization?
a) To eliminate all risks
b) To maintain risks at an acceptable level
c) To increase operational costs
d) To avoid all insurance policies
Correct ANS: b) To maintain risks at an acceptable
level
Rationale: Risk management aims to identify and
mitigate risks to a level that is acceptable for the
organization.
2. What is the primary purpose of a risk management
framework?
a) To minimize costs
b) To streamline the claims process
c) To provide a structured approach to managing risk
d) To eliminate the need for audits
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