rmi module 1 questions and answers
rated A+
risk at the individual level can best be defined as
A; certainty regarding outcomes
B; uncertainty regarding loss
c: uncertainty regarding profits
D; certainty regarding loss - correct answer ✔B; uncertainty regarding loss
which of the following is a common pre loss objective
a; economy
b; survival
c; earnings stability
d; growth - correct answer ✔a; economy
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?
a; moral/morale hazard
b; physical hazard
c; societal hazard
d; none of the above - correct answer ✔a; moral/morale hazard
, how does the mathematical measure of standard deviation help risk
managers?
a; it measures the difference between what is expected to happen and what
actually happens
b; it can determine the expected value of a business venture
c; it calculates the exact outcome a project will achieve
d; using standard deviation calculations is not helpful to risk managers -
correct answer ✔a; it measures the difference between what is expected to
happen and what actually happens
Risks affecting a large portion of the population at a given time are which of
the following?
A; fundamental risks
b; particular risks
c; hazard risks
d; core risks - correct answer ✔A; fundamental risks
Risk prevention and risk reduction are both included under which of the
following?
a; risk classification
b; risk identification
c: risk (loss) control
d; risk (loss) financing - correct answer ✔c: risk (loss) control
which of the following is not a step in the risk management process?
rated A+
risk at the individual level can best be defined as
A; certainty regarding outcomes
B; uncertainty regarding loss
c: uncertainty regarding profits
D; certainty regarding loss - correct answer ✔B; uncertainty regarding loss
which of the following is a common pre loss objective
a; economy
b; survival
c; earnings stability
d; growth - correct answer ✔a; economy
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?
a; moral/morale hazard
b; physical hazard
c; societal hazard
d; none of the above - correct answer ✔a; moral/morale hazard
, how does the mathematical measure of standard deviation help risk
managers?
a; it measures the difference between what is expected to happen and what
actually happens
b; it can determine the expected value of a business venture
c; it calculates the exact outcome a project will achieve
d; using standard deviation calculations is not helpful to risk managers -
correct answer ✔a; it measures the difference between what is expected to
happen and what actually happens
Risks affecting a large portion of the population at a given time are which of
the following?
A; fundamental risks
b; particular risks
c; hazard risks
d; core risks - correct answer ✔A; fundamental risks
Risk prevention and risk reduction are both included under which of the
following?
a; risk classification
b; risk identification
c: risk (loss) control
d; risk (loss) financing - correct answer ✔c: risk (loss) control
which of the following is not a step in the risk management process?
