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100+ Free III IC-86 Practice Questions

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2026 Statistics

Key Facts: III IC-86 Exam

100

Online MCQs per paper

III Examination Handbook

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

40

Credit points for IC-86

III credit-point system

INR 600

India paper fee (40 credits) w.e.f. 1.4.2026

III Table of Fees

INR 800

Fresh registration (India) w.e.f. 1.4.2026

III Table of Fees

III IC-86 is a 100-question, 2-hour online MCQ paper on Risk Management. Passing requires 60% (Distinction from 75%). India paper enrollment for this 40-credit subject is INR 600 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra).

Sample III IC-86 Practice Questions

Try these sample questions to test your III IC-86 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best defines pure risk?
A.A situation where there is a possibility of either loss or gain
B.A situation where there is only the possibility of loss or no loss
C.A situation involving fluctuation in currency exchange rates
D.A situation involving deliberate speculative investments
Explanation: Pure risk involves situations where there is only a possibility of loss or no loss, such as property damage from a fire. There is no possibility of financial gain.
2Which component is central to Enterprise Risk Management (ERM)?
A.Managing risks only within individual departments (silo approach)
B.Integrating risk management across the entire organization
C.Focusing solely on insurable risks
D.Ignoring strategic risks to prioritize operational risks
Explanation: ERM is a holistic approach that integrates risk management across all levels and functions of an organization, breaking down departmental silos.
3In the context of risk management, what is a 'hazard'?
A.The actual cause of a loss
B.A condition that increases the frequency or severity of a loss
C.The financial impact of a disaster
D.The maximum possible loss an organization can face
Explanation: A hazard is a condition that creates or increases the likelihood or severity of a loss. For example, storing flammable materials improperly is a hazard.
4Which of the following is considered a primary step in the risk management process?
A.Risk financing
B.Risk control
C.Risk identification
D.Risk evaluation
Explanation: Risk identification is the fundamental first step in the risk management process. Without identifying risks, they cannot be evaluated or managed.
5A company decides to stop manufacturing a highly flammable product to avoid potential liability claims. Which risk control technique is this?
A.Loss prevention
B.Loss reduction
C.Risk avoidance
D.Risk retention
Explanation: Risk avoidance involves completely abandoning or not undertaking an activity that generates a particular risk.
6Which metric estimates the maximum expected loss on a portfolio over a set time period at a given confidence level under normal market conditions?
A.Value at Risk (VaR)
B.Expected Shortfall
C.Standard Deviation
D.Beta Coefficient
Explanation: Value at Risk (VaR) estimates the maximum expected loss over a specific horizon at a stated confidence level, typically under normal market conditions.
7Installing a sprinkler system in a warehouse primarily serves which risk management function?
A.Risk avoidance
B.Loss prevention
C.Loss reduction
D.Risk transfer
Explanation: A sprinkler system aims to limit the damage once a fire has started, thereby reducing the severity of the loss (loss reduction).
8Which of the following best describes 'moral hazard'?
A.Increased risk due to a person's indifference to loss because they have insurance
B.Dishonest tendencies that increase the probability of a loss
C.A physical condition that increases the chance of loss
D.A shift in legal precedents increasing liability risks
Explanation: Moral hazard refers to deliberate acts or dishonest tendencies by an insured that increase the chance of a loss, such as arson for insurance money.
9What is the main objective of a Business Continuity Plan (BCP)?
A.To transfer all operational risks to an insurer
B.To ensure critical business functions can continue during and after a disaster
C.To identify minor everyday operational risks
D.To maximize speculative risk returns
Explanation: A BCP focuses on keeping essential business processes running during and after a disruptive event, ensuring organizational survival.
10In the ERM framework, 'risk appetite' is best defined as:
A.The total amount of insurance coverage purchased
B.The amount and type of risk an organization is willing to pursue or retain
C.The cost of avoiding a particular risk
D.The regulatory limits on risk-taking
Explanation: Risk appetite is the broad level and type of risk an organization is willing to accept in pursuit of its strategic objectives.

About the III IC-86 Exam

The III IC-86 Risk Management exam evaluates candidate understanding of key principles and practical concepts in Risk Management. The syllabus encompasses various modules detailed below.

Assessment

100 objective multiple-choice questions in a single online paper. IC-86 is a 40-credit paper under the Insurance Institute of India (III) professional credit system.

Time Limit

2 hours

Passing Score

60% (Distinction at 75% or above)

Exam Fee

INR 600 per subject (40 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees. (Insurance Institute of India (III))

III IC-86 Exam Content Outline

4 questions

Risk Metrics

Practice questions focusing on risk metrics concepts.

4 questions

Internal Controls

Practice questions focusing on internal controls concepts.

4 questions

Governance

Practice questions focusing on governance concepts.

4 questions

Financial Risk

Practice questions focusing on financial risk concepts.

3 questions

Hedging

Practice questions focusing on hedging concepts.

3 questions

Operational Risk

Practice questions focusing on operational risk concepts.

3 questions

Quantitative Analysis

Practice questions focusing on quantitative analysis concepts.

2 questions

Risk Definitions

Practice questions focusing on risk definitions concepts.

2 questions

Loss Reduction

Practice questions focusing on loss reduction concepts.

2 questions

Business Continuity

Practice questions focusing on business continuity concepts.

2 questions

Risk Appetite

Practice questions focusing on risk appetite concepts.

2 questions

Rpo

Practice questions focusing on rpo concepts.

2 questions

Systemic Risk

Practice questions focusing on systemic risk concepts.

2 questions

Documentation

Practice questions focusing on documentation concepts.

2 questions

Duplication

Practice questions focusing on duplication concepts.

2 questions

Coso

Practice questions focusing on coso concepts.

2 questions

Probability

Practice questions focusing on probability concepts.

2 questions

Loss Prevention

Practice questions focusing on loss prevention concepts.

2 questions

Strategic Risk

Practice questions focusing on strategic risk concepts.

2 questions

Lines Of Defense

Practice questions focusing on lines of defense concepts.

1 questions

Pure Risk

Practice questions focusing on pure risk concepts.

1 questions

Erm Framework

Practice questions focusing on erm framework concepts.

1 questions

Enterprise Risk

Practice questions focusing on enterprise risk concepts.

1 questions

Hazards Perils

Practice questions focusing on hazards perils concepts.

1 questions

Risk Process

Practice questions focusing on risk process concepts.

1 questions

Management Steps

Practice questions focusing on management steps concepts.

1 questions

Control Techniques

Practice questions focusing on control techniques concepts.

1 questions

Avoidance

Practice questions focusing on avoidance concepts.

1 questions

Var

Practice questions focusing on var concepts.

1 questions

Property Risk

Practice questions focusing on property risk concepts.

1 questions

Moral Hazard

Practice questions focusing on moral hazard concepts.

1 questions

Hazards

Practice questions focusing on hazards concepts.

1 questions

Bcp

Practice questions focusing on bcp concepts.

1 questions

Erm Strategy

Practice questions focusing on erm strategy concepts.

1 questions

Risk Matrix

Practice questions focusing on risk matrix concepts.

1 questions

Frequency Severity

Practice questions focusing on frequency severity concepts.

1 questions

Flowcharting

Practice questions focusing on flowcharting concepts.

1 questions

Risk Tools

Practice questions focusing on risk tools concepts.

1 questions

Rto

Practice questions focusing on rto concepts.

1 questions

Drp

Practice questions focusing on drp concepts.

1 questions

Financial Crisis

Practice questions focusing on financial crisis concepts.

1 questions

Fraud Prevention

Practice questions focusing on fraud prevention concepts.

1 questions

Liability Risks

Practice questions focusing on liability risks concepts.

1 questions

Strict Liability

Practice questions focusing on strict liability concepts.

1 questions

Cro

Practice questions focusing on cro concepts.

1 questions

Captives

Practice questions focusing on captives concepts.

1 questions

Risk Financing

Practice questions focusing on risk financing concepts.

1 questions

Recovery Sites

Practice questions focusing on recovery sites concepts.

1 questions

Dr Strategies

Practice questions focusing on dr strategies concepts.

1 questions

Delphi Technique

Practice questions focusing on delphi technique concepts.

1 questions

Qualitative Analysis

Practice questions focusing on qualitative analysis concepts.

1 questions

External Risks

Practice questions focusing on external risks concepts.

1 questions

Risk Categorization

Practice questions focusing on risk categorization concepts.

1 questions

Risk Register

Practice questions focusing on risk register concepts.

1 questions

Probability Distributions

Practice questions focusing on probability distributions concepts.

1 questions

Claim Frequency

Practice questions focusing on claim frequency concepts.

1 questions

Redundancy

Practice questions focusing on redundancy concepts.

1 questions

Iso 31000

Practice questions focusing on iso 31000 concepts.

1 questions

Risk Definition

Practice questions focusing on risk definition concepts.

1 questions

Law Of Large Numbers

Practice questions focusing on law of large numbers concepts.

1 questions

Risk Profile

Practice questions focusing on risk profile concepts.

1 questions

Erm Vs Traditional

Practice questions focusing on erm vs traditional concepts.

1 questions

Portfolio View

Practice questions focusing on portfolio view concepts.

1 questions

Risk Mapping

Practice questions focusing on risk mapping concepts.

1 questions

Treatment Strategies

Practice questions focusing on treatment strategies concepts.

1 questions

Statistics

Practice questions focusing on statistics concepts.

1 questions

Variance

Practice questions focusing on variance concepts.

1 questions

Contractual Transfer

Practice questions focusing on contractual transfer concepts.

1 questions

Indemnity

Practice questions focusing on indemnity concepts.

1 questions

Peril Vs Hazard

Practice questions focusing on peril vs hazard concepts.

1 questions

Terminology

Practice questions focusing on terminology concepts.

1 questions

Data Recovery

Practice questions focusing on data recovery concepts.

1 questions

Risk Categories

Practice questions focusing on risk categories concepts.

1 questions

Health Safety

Practice questions focusing on health safety concepts.

1 questions

Black Swan

Practice questions focusing on black swan concepts.

1 questions

Extreme Events

Practice questions focusing on extreme events concepts.

1 questions

Financial Derivatives

Practice questions focusing on financial derivatives concepts.

1 questions

Control Activities

Practice questions focusing on control activities concepts.

1 questions

Residual Risk

Practice questions focusing on residual risk concepts.

1 questions

Inherent Risk

Practice questions focusing on inherent risk concepts.

1 questions

Bia

Practice questions focusing on bia concepts.

1 questions

Business Impact

Practice questions focusing on business impact concepts.

1 questions

Trend Analysis

Practice questions focusing on trend analysis concepts.

1 questions

Financial Controls

Practice questions focusing on financial controls concepts.

1 questions

Risk Capacity

Practice questions focusing on risk capacity concepts.

1 questions

Idiosyncratic Risk

Practice questions focusing on idiosyncratic risk concepts.

1 questions

Risk Treatment

Practice questions focusing on risk treatment concepts.

1 questions

Monte Carlo

Practice questions focusing on monte carlo concepts.

1 questions

Retention

Practice questions focusing on retention concepts.

1 questions

Sir

Practice questions focusing on sir concepts.

1 questions

Supply Chain

Practice questions focusing on supply chain concepts.

1 questions

Cat Modeling

Practice questions focusing on cat modeling concepts.

1 questions

Catastrophe Risk

Practice questions focusing on catastrophe risk concepts.

1 questions

Captive Insurance

Practice questions focusing on captive insurance concepts.

1 questions

Pure Captive

Practice questions focusing on pure captive concepts.

1 questions

Liquidity Risk

Practice questions focusing on liquidity risk concepts.

1 questions

Reputational Risk

Practice questions focusing on reputational risk concepts.

1 questions

Intangible Risk

Practice questions focusing on intangible risk concepts.

1 questions

Risk Culture

Practice questions focusing on risk culture concepts.

1 questions

Employee Engagement

Practice questions focusing on employee engagement concepts.

1 questions

Liability

Practice questions focusing on liability concepts.

1 questions

Vicarious Liability

Practice questions focusing on vicarious liability concepts.

1 questions

Raroc

Practice questions focusing on raroc concepts.

1 questions

Financial Metrics

Practice questions focusing on financial metrics concepts.

1 questions

Change Management

Practice questions focusing on change management concepts.

1 questions

Site Inspection

Practice questions focusing on site inspection concepts.

1 questions

Physical Risk

Practice questions focusing on physical risk concepts.

1 questions

Legal Liability

Practice questions focusing on legal liability concepts.

1 questions

Negligence

Practice questions focusing on negligence concepts.

1 questions

Internal Audit

Practice questions focusing on internal audit concepts.

1 questions

Crisis Communication

Practice questions focusing on crisis communication concepts.

1 questions

Public Relations

Practice questions focusing on public relations concepts.

1 questions

Secondary Risk

Practice questions focusing on secondary risk concepts.

1 questions

Risk Responses

Practice questions focusing on risk responses concepts.

1 questions

Event Tree

Practice questions focusing on event tree concepts.

1 questions

Analysis Tools

Practice questions focusing on analysis tools concepts.

1 questions

Stress Testing

Practice questions focusing on stress testing concepts.

1 questions

Derivatives

Practice questions focusing on derivatives concepts.

1 questions

Financial Transfer

Practice questions focusing on financial transfer concepts.

1 questions

Risk Tolerance

Practice questions focusing on risk tolerance concepts.

1 questions

Cyber Risk

Practice questions focusing on cyber risk concepts.

1 questions

Data Replication

Practice questions focusing on data replication concepts.

1 questions

It Recovery

Practice questions focusing on it recovery concepts.

1 questions

Environmental Risk

Practice questions focusing on environmental risk concepts.

1 questions

Long Tail

Practice questions focusing on long tail concepts.

1 questions

Fraud

Practice questions focusing on fraud concepts.

1 questions

Kri

Practice questions focusing on kri concepts.

1 questions

Credit Risk

Practice questions focusing on credit risk concepts.

1 questions

Erm Vs Silo

Practice questions focusing on erm vs silo concepts.

1 questions

Correlation

Practice questions focusing on correlation concepts.

1 questions

Cat Bonds

Practice questions focusing on cat bonds concepts.

1 questions

Alternative Risk Transfer

Practice questions focusing on alternative risk transfer concepts.

1 questions

Emerging Risks

Practice questions focusing on emerging risks concepts.

1 questions

Ai Risk

Practice questions focusing on ai risk concepts.

1 questions

Tabletop Exercise

Practice questions focusing on tabletop exercise concepts.

1 questions

Bcp Testing

Practice questions focusing on bcp testing concepts.

1 questions

Risk Scoring

Practice questions focusing on risk scoring concepts.

1 questions

Supply Chain Risk

Practice questions focusing on supply chain risk concepts.

1 questions

Dependency

Practice questions focusing on dependency concepts.

1 questions

Risk Dashboard

Practice questions focusing on risk dashboard concepts.

1 questions

Reporting

Practice questions focusing on reporting concepts.

1 questions

Mfl

Practice questions focusing on mfl concepts.

1 questions

Loss Estimation

Practice questions focusing on loss estimation concepts.

1 questions

Currency Risk

Practice questions focusing on currency risk concepts.

1 questions

Cognitive Bias

Practice questions focusing on cognitive bias concepts.

1 questions

Availability Heuristic

Practice questions focusing on availability heuristic concepts.

1 questions

D And O

Practice questions focusing on d and o concepts.

1 questions

Insurance Types

Practice questions focusing on insurance types concepts.

1 questions

Administrative Controls

Practice questions focusing on administrative controls concepts.

1 questions

Safety

Practice questions focusing on safety concepts.

1 questions

Pestle

Practice questions focusing on pestle concepts.

1 questions

Cbi

Practice questions focusing on cbi concepts.

1 questions

Supply Chain Insurance

Practice questions focusing on supply chain insurance concepts.

1 questions

Subjective Assessment

Practice questions focusing on subjective assessment concepts.

1 questions

Independence

Practice questions focusing on independence concepts.

1 questions

Risk Velocity

Practice questions focusing on risk velocity concepts.

1 questions

Mtd

Practice questions focusing on mtd concepts.

1 questions

Uninsurable Risk

Practice questions focusing on uninsurable risk concepts.

1 questions

Speculative Risk

Practice questions focusing on speculative risk concepts.

1 questions

Operational Controls

Practice questions focusing on operational controls concepts.

1 questions

Risk Correlation

Practice questions focusing on risk correlation concepts.

1 questions

Aggregation

Practice questions focusing on aggregation concepts.

1 questions

Key Person

Practice questions focusing on key person concepts.

1 questions

Insurance

Practice questions focusing on insurance concepts.

1 questions

Quantitative Models

Practice questions focusing on quantitative models concepts.

1 questions

Limitations

Practice questions focusing on limitations concepts.

1 questions

Risk Owner

Practice questions focusing on risk owner concepts.

1 questions

Accountability

Practice questions focusing on accountability concepts.

1 questions

Dr Lifecycle

Practice questions focusing on dr lifecycle concepts.

1 questions

Continuous Improvement

Practice questions focusing on continuous improvement concepts.

How to Pass the III IC-86 Exam

What You Need to Know

  • Passing score: 60% (Distinction at 75% or above)
  • Assessment: 100 objective multiple-choice questions in a single online paper. IC-86 is a 40-credit paper under the Insurance Institute of India (III) professional credit system.
  • Time limit: 2 hours
  • Exam fee: INR 600 per subject (40 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

III IC-86 Study Tips from Top Performers

1Study the official III IC-86 coursebook chapter by chapter before mixed mocks.
2Review the core regulations and guidelines relating to this paper.
3Sit full 100-question, 2-hour mocks aiming above 60%, with Distinction practice at 75%+.

Frequently Asked Questions

How many questions are on the III IC-86 exam?

The III objective papers, including IC-86, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-86 passing score?

Passing marks for III online MCQ papers are 60% or above. Candidates scoring at least 75% earn Distinction in that subject.

How many credit points does IC-86 carry?

This paper (IC-86) carries 40 credit points under the Insurance Institute of India credit system.