RMI 2302 LATEST 2026 EXAMINATION SET QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔Gary works in a factory where the workers are known to leave oily rags all over the
place. Which of the following best describes the oily rags?
moral/morale hazard
physical hazard
societal hazard
none of the above - ✔✔physcial hazard
✔✔How does the mathematical measure of Standard Deviation help risk mangers?
It measures the difference between what is expected to happen and what actually
happens
It can determine the expected value of a business venture
It calculates the exact outcome a project will achieve
Using Standard Deviation calculations is not helpful to risk mangers - ✔✔it measures
the difference between what is expected to happen and what actually happens
✔✔Hazards may be categorized by which of the following groups?
Primary and secondary
Tangible (Physical) and intangible
Objective and subjective
None of the above - ✔✔Tangible (physical) and intangible
✔✔Which scenario below has the LEAST amount of risk (uncertainty)?
A window washer falls from scaffolding that breaks at the 68th floor of Rockefeller
center
An intoxicated college student falls down one flight of stairs.
A person driving on Interstate 10 while not wearing a seat belt.
,All three have an equal amount of risk. - ✔✔a window washer falls from scaffolding that
breaks at the 68th floor of rockerfeller center
✔✔Donna has a home that is insured to its maximum value. She often leaves the door
unlocked in case she forgets her keys. She knows that her insurance policy will pay for
any losses if her home is robbed. Which of the following best applies to Donna?
moral/morale hazard
physical hazard
societal hazard
none of the above - ✔✔moral/morale hazard
✔✔Risks affecting a large portion of the population at a given time are which of the
following?
fundamental risks
particular risks
hazard risks
core risks - ✔✔fundamental risks
✔✔Every year, Sam vacations in Las Vegas, and has a set budget of $5000 for
gambling. Sam's casino wagering is an example of _______________
Financial planning
Pure Risk
Speculative Risk
Expected Value - ✔✔speculative risk
✔✔The scientific approach to dealing with risk is called______________
Risk Reduction
Risk Planning
Risk Management
, Risk Avoidance - ✔✔risk management
✔✔Which of the following method(s) best identifies all the risks faced by an
organization?
questionnaires
checklists
procedure guides
combination of all of the above - ✔✔combination of all of the above
✔✔Karen won't allow any of the neighborhood children into her yard because she has a
large swimming pool and doesn't want anyone to fall in, resulting in her being
responsible for the harm of a child. What type of risk is Karen trying to avoid?
liability
property
personal
financial - ✔✔liability
✔✔Risk at the individual level can best be defined as__________
Certainty regarding outcomes
Uncertainty regarding loss
Uncertainty regarding profits
Certainty regarding loss - ✔✔uncertainty regarding loss
✔✔Insurance is a mechanism for managing________________
Pure Risk
Speculative Risk
Market Risk
None of the above - ✔✔pure risk
AND SOLUTIONS GUARANTEE A+
✔✔Gary works in a factory where the workers are known to leave oily rags all over the
place. Which of the following best describes the oily rags?
moral/morale hazard
physical hazard
societal hazard
none of the above - ✔✔physcial hazard
✔✔How does the mathematical measure of Standard Deviation help risk mangers?
It measures the difference between what is expected to happen and what actually
happens
It can determine the expected value of a business venture
It calculates the exact outcome a project will achieve
Using Standard Deviation calculations is not helpful to risk mangers - ✔✔it measures
the difference between what is expected to happen and what actually happens
✔✔Hazards may be categorized by which of the following groups?
Primary and secondary
Tangible (Physical) and intangible
Objective and subjective
None of the above - ✔✔Tangible (physical) and intangible
✔✔Which scenario below has the LEAST amount of risk (uncertainty)?
A window washer falls from scaffolding that breaks at the 68th floor of Rockefeller
center
An intoxicated college student falls down one flight of stairs.
A person driving on Interstate 10 while not wearing a seat belt.
,All three have an equal amount of risk. - ✔✔a window washer falls from scaffolding that
breaks at the 68th floor of rockerfeller center
✔✔Donna has a home that is insured to its maximum value. She often leaves the door
unlocked in case she forgets her keys. She knows that her insurance policy will pay for
any losses if her home is robbed. Which of the following best applies to Donna?
moral/morale hazard
physical hazard
societal hazard
none of the above - ✔✔moral/morale hazard
✔✔Risks affecting a large portion of the population at a given time are which of the
following?
fundamental risks
particular risks
hazard risks
core risks - ✔✔fundamental risks
✔✔Every year, Sam vacations in Las Vegas, and has a set budget of $5000 for
gambling. Sam's casino wagering is an example of _______________
Financial planning
Pure Risk
Speculative Risk
Expected Value - ✔✔speculative risk
✔✔The scientific approach to dealing with risk is called______________
Risk Reduction
Risk Planning
Risk Management
, Risk Avoidance - ✔✔risk management
✔✔Which of the following method(s) best identifies all the risks faced by an
organization?
questionnaires
checklists
procedure guides
combination of all of the above - ✔✔combination of all of the above
✔✔Karen won't allow any of the neighborhood children into her yard because she has a
large swimming pool and doesn't want anyone to fall in, resulting in her being
responsible for the harm of a child. What type of risk is Karen trying to avoid?
liability
property
personal
financial - ✔✔liability
✔✔Risk at the individual level can best be defined as__________
Certainty regarding outcomes
Uncertainty regarding loss
Uncertainty regarding profits
Certainty regarding loss - ✔✔uncertainty regarding loss
✔✔Insurance is a mechanism for managing________________
Pure Risk
Speculative Risk
Market Risk
None of the above - ✔✔pure risk
