Brown RMIN 5100s Test 1 Questions and Answers 2024

Brown RMIN 5100s Test 1 Questions and Answers 2024 Categories of commercial loss exposures - Correct Answer-1. property loss 2. personnel loss 3. liability loss 4. net income loss Property loss - Correct Answer--tangible (real estate, personal property) -intangible (patent, copyright) Personnel Loss - Correct Answer-death, disability, retirement, injury of employees liability loss - Correct Answer-your responsibility for bodily injury, property damage, or financial loss to someone net income loss - Correct Answer-reduction in income due to direct loss Risk management process - Correct Answer-1. Identify loss exposures 2. Measure and analyze the loss exposures 3. Consider and select the appropriate risk management techniques 4. Implement and monitor the risk management program identify loss exposures - Correct Answer-first step and most important in the risk management process How to identify loss exposures - Correct Answer--document analysis -compliance reviews -inspections -expertise Ways to identify loss exposures with document analysis? - Correct Answer-1. risk assessment questionnaires and checklists 2. financial statements 3. contracts 4. insurance policies 5. organizational policies 6. flowcharts & organization charts 7. loss histories Step 2: Measure and Analyze Loss Exposures - Correct Answer-involves estimating the likely significance of possible loss exposures based on: frequency, severity, total dollar losses, maximum possible losses, probable maximum losses (PML), and timing high frequency, low severity - Correct Answer-funded reserve (retain) or loss prevention low frequency, low severity - Correct Answer-unfunded retention high frequency, high severity - Correct Answer-avoidance, captive or risk retention group, loss prevention/reduction low frequency, high severity - Correct Answer-insurance or loss reduction implement and monitor the chosen techniques - Correct Answer--often require cooperation among multiple departments -reviews are needed to ensure expected results are achieved -if needed, adjusts should be made Good RM heuristics - Correct Answer--dont risk a lot for a little -never risk more than you can afford to lose -consider the odds Controlling common causes of property losses - Correct Answer-most losses result from a chain of events, but some are caused by the convergence of several unrelated events Approaches to risk control - Correct Answer--engineering approach -human behavior approach Engineering approach to risk control - Correct Answer-attacks hazards by reviewing and improving the design and location of properties and equipment to reduce the number of hazards Human behavior approach to risk control - Correct Answer-attacks hazards by modifying people's behavior to reduce the frequency of unsafe acts Common property exposures - Correct Answer--Fire -Burglary, Robbery and Employee Theft -Explosion -Windstorm -Flood -Earthqua