Enterprise Risk Management — DU B.A. (V.S.) Insurance Management Previous Year Question Papers

8. Write short notes on any three of the following : (i) Enterprise's internal environment. (ii) Value at risk (VaR). (iii) Skew, kurtosis, and correlation. Management (NEP) (iv) Types of financial institutions. 1. Discuss the significance of managing risk in modem financial institutions and explain how enterprise risk management (ERM) contributes to strategic decision-making and long-term organizational resilience. 2. Identify and categorise the major types of risks faced by a multinational financial institution, and discuss how emerging risks such as climate risk, cyber risk, an.d demographic shifts are reshaping traditional risk frameworks. 3.. Elaborate on the differences between systemlc risk and residual risk, and discuss why bo.th pose significant challenges to financial stability of an enterprise. 4. Evaluate the trade-offs between model complexity and interpretability in ERM, and discuss how over-reliance on sophisticated models can introduce model risk. 5. Discuss the challenges of measuring no.n-financial risks, and propose methodologies to integrate them into a unified enterprise risk assessment framework. 6. Elaborate on the differences between deterministic and stochastic modelling approaches in enterprise risk management, and evaluate their suitability fo.r forecasting market risk, insurance liabilities, and operational 1osses. 7. Compare and contrast qualitative and quantitative methods of assessing risk and explain when each is most appropriate.