RMI 2302 Exam Questions and Answers
Graded A+
Post-Loss Objectives for an organization include:
Continuity of Operations
Reduction is Anxiety
Social Responsibility - Correct answer-Continuity of Operations and social
responsibility
When considering the risk involved in a specific activity, _____________. -
Correct answer-Danger and Risk are not always correlated
Risk prevention methods are best applied to? - Correct answer-High frequency
losses.
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,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: - Correct answer-Risk averse.
Static risks ________________ - Correct answer-Do not change over time
Every year, Sam vacations in Las Vegas, and has a set budget of $5000 for
gambling. Sam's casino wagering is an example of _______________ - Correct
answer-Speculative risk.
When considering organizational risk, businesses have to consider_____________
- Correct answer-Those risks that prevent the organization from achieving its goals
Which of the following is NOT a type of funded retention?
reserves
self-insurance
captives - Correct answer-All of the above are examples of funded retention.
Which of the following terms describes the immediate cause of loss? - Correct
answer-Peril.
Which scenario below has the LEAST amount of risk (uncertainty)? - Correct
answer-A window washer falls from scaffolding that breaks at the 68th floor of
Rockefeller center
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Risk at the individual level can best be defined as__________ - Correct answer-
Uncertainty regarding loss
Which of the following method(s) best identifies all the risks faced by an
organization?
questionnaires
checklists
procedure guides - Correct answer-combination of all of the above.
How does the mathematical measure of Standard Deviation help risk managers? -
Correct answer-It measures the difference between what is expected to happen and
what actually happens
Which of the following is the last step in the risk management process (but often
done first)? - Correct answer-Review and Evaluate
Risk prevention and risk reduction are both included under which of the following?
- Correct answer-risk (loss) control
Carly is involved in a three-car automobile accident. Which type of risk is this an
example of? - Correct answer-particular risk
Which of the following is a common pre-loss objective? - Correct answer-economy
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Think about the following statement. "Innovations to make us feel safer often lead
to us changing our habits because we feel safer, thereby increasing risk." Which of
the following is an example of the statement? - Correct answer-Erin just paid ADT
to install an alarm system in her house. Now, she can finally stop worrying about
locking her doors at night.
According to chapter 2 of the textbook, which of the following are examples of
issues that may arise that models may predict. - Correct answer-Black swans
Chapter 2 discusses government policies that affect the whole population. Dean
Kilpatrick defines __________ as a "system of laws, regulatory measures, courses
of action, and funding priorities concerning a given topic..." - Correct answer-
public policy
What is a main criticism of the mainstream media by risk professionals regarding
risk? - Correct answer-The public often ends up underestimating common risks and
exaggerating low risks.
Risks associated with self-driving cars include:
false sense of security
programming errors
lack of regulation - Correct answer-all of the above.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Graded A+
Post-Loss Objectives for an organization include:
Continuity of Operations
Reduction is Anxiety
Social Responsibility - Correct answer-Continuity of Operations and social
responsibility
When considering the risk involved in a specific activity, _____________. -
Correct answer-Danger and Risk are not always correlated
Risk prevention methods are best applied to? - Correct answer-High frequency
losses.
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,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: - Correct answer-Risk averse.
Static risks ________________ - Correct answer-Do not change over time
Every year, Sam vacations in Las Vegas, and has a set budget of $5000 for
gambling. Sam's casino wagering is an example of _______________ - Correct
answer-Speculative risk.
When considering organizational risk, businesses have to consider_____________
- Correct answer-Those risks that prevent the organization from achieving its goals
Which of the following is NOT a type of funded retention?
reserves
self-insurance
captives - Correct answer-All of the above are examples of funded retention.
Which of the following terms describes the immediate cause of loss? - Correct
answer-Peril.
Which scenario below has the LEAST amount of risk (uncertainty)? - Correct
answer-A window washer falls from scaffolding that breaks at the 68th floor of
Rockefeller center
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Risk at the individual level can best be defined as__________ - Correct answer-
Uncertainty regarding loss
Which of the following method(s) best identifies all the risks faced by an
organization?
questionnaires
checklists
procedure guides - Correct answer-combination of all of the above.
How does the mathematical measure of Standard Deviation help risk managers? -
Correct answer-It measures the difference between what is expected to happen and
what actually happens
Which of the following is the last step in the risk management process (but often
done first)? - Correct answer-Review and Evaluate
Risk prevention and risk reduction are both included under which of the following?
- Correct answer-risk (loss) control
Carly is involved in a three-car automobile accident. Which type of risk is this an
example of? - Correct answer-particular risk
Which of the following is a common pre-loss objective? - Correct answer-economy
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Think about the following statement. "Innovations to make us feel safer often lead
to us changing our habits because we feel safer, thereby increasing risk." Which of
the following is an example of the statement? - Correct answer-Erin just paid ADT
to install an alarm system in her house. Now, she can finally stop worrying about
locking her doors at night.
According to chapter 2 of the textbook, which of the following are examples of
issues that may arise that models may predict. - Correct answer-Black swans
Chapter 2 discusses government policies that affect the whole population. Dean
Kilpatrick defines __________ as a "system of laws, regulatory measures, courses
of action, and funding priorities concerning a given topic..." - Correct answer-
public policy
What is a main criticism of the mainstream media by risk professionals regarding
risk? - Correct answer-The public often ends up underestimating common risks and
exaggerating low risks.
Risks associated with self-driving cars include:
false sense of security
programming errors
lack of regulation - Correct answer-all of the above.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
