RMI 2302 Exam Questions and Answers
Graded A+
Which of the following is the last step in the risk management process (but often
done first)?
Review and Evaluate
Determine Objectives
Identify Risks
Implement the decisions - Correct answer-Review and Evaluate
Risk reduction methods are best applied to?
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,High frequency losses.
High severity losses.
Both a. and b.
neither a. nor b. - Correct answer-High severity loss
When considering organizational risk, businesses have to consider_____________
Those risks that impact large segments of the population (society)
Those risks that impact each individual customer
Those risks that prevent the organization from achieving its goals
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,Those risks associated with climate change - Correct answer-Those risks that
prevent the organization from achieving its goals
Tom is a college student at FSU. He has the option to buy a parking pass at the
beginning of the year for $250. If Tom doesn't buy the pass, he has to park on the
street or pay the valet parking service $5 per day. If Tom does not buy the parking
pass, he expects to have to use the valet parking services 40 times. However, he
may end up using the valet service up to 80 times. Tom decides that he would
rather pay the $250 than risk not being able to find a spot on the street. Tom could
be described as which of the following:
risk averse
risk neutral
risk seeking
risk conscious - Correct answer-risk averse
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, Which of the following terms describes the immediate cause of loss?
peril
hazard
exposure
all of the above - Correct answer-peril
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
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Graded A+
Which of the following is the last step in the risk management process (but often
done first)?
Review and Evaluate
Determine Objectives
Identify Risks
Implement the decisions - Correct answer-Review and Evaluate
Risk reduction methods are best applied to?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,High frequency losses.
High severity losses.
Both a. and b.
neither a. nor b. - Correct answer-High severity loss
When considering organizational risk, businesses have to consider_____________
Those risks that impact large segments of the population (society)
Those risks that impact each individual customer
Those risks that prevent the organization from achieving its goals
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Those risks associated with climate change - Correct answer-Those risks that
prevent the organization from achieving its goals
Tom is a college student at FSU. He has the option to buy a parking pass at the
beginning of the year for $250. If Tom doesn't buy the pass, he has to park on the
street or pay the valet parking service $5 per day. If Tom does not buy the parking
pass, he expects to have to use the valet parking services 40 times. However, he
may end up using the valet service up to 80 times. Tom decides that he would
rather pay the $250 than risk not being able to find a spot on the street. Tom could
be described as which of the following:
risk averse
risk neutral
risk seeking
risk conscious - Correct answer-risk averse
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Which of the following terms describes the immediate cause of loss?
peril
hazard
exposure
all of the above - Correct answer-peril
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
