ACE Risk Assessment & Underwriting

Question 1

What is the first step in risk management for ACORD Certified Expert?

Accepted Answer

Identifying potential risks and hazards

Answer

Risk identification is the first step; you must know what risks exist.

Question 2

What is a risk matrix used for in ACORD Certified Expert?

Accepted Answer

Evaluating risks based on likelihood and impact

Answer

A risk matrix plots risks on likelihood versus impact to help prioritize.

Question 3

What does risk mitigation mean in ACORD Certified Expert?

Accepted Answer

Taking steps to reduce likelihood or impact of risks

Answer

Risk mitigation reduces the probability or potential impact of risks.

Question 4

Which strategy involves transferring risk to a third party in ACORD Certified Expert?

Accepted Answer

Transfer (e.g., insurance)

Answer

Risk transfer shifts the financial impact to another party, commonly through insurance.

Question 5

What is a risk register in ACORD Certified Expert?

Accepted Answer

A documented list of risks with analysis and response plans

Answer

A risk register records all identified risks, their assessment, and planned responses.

(ACE) ACORD Certified Expert Practice Test