RMI 2302 Exam 1 FSU – Complete Practice
Questions & Key Risk Management Concepts
Verified Questions Provided with A+ Graded
Rationales Latest Updated 2026
In Module 1, we discussed hazards. Slippery roads or fog are examples of a:
Physical hazard
In Module 1, we discussed how you measure risk. When measuring risk, frequency is
synonymous with:
Likelihood
In Module 1, we discussed risk (loss) control. Airbags in a vehicle are an example of:
Risk (loss) reduction
In Module 1, we discussed the risk management. Which of the following is one of the "rules
of risk management":
I. Consider the odds
II. Don't risk more than you can afford to lose
III. Minimize risk when possible
I & II
Which of the following allows individuals to substitute a small certain payment for a larger
uncertain possibility of a loss. In other words, what makes insurance possible?
Law of Large Numbers
In Module 1, we discussed risk financing. Paying unanticipated losses out of normal cash
flows is an example of:
Unplanned retention
, In Module 1, we discussed risk measurement. Which of the following is the best measure of
risk:
Standard deviation
In Module 1, we discussed categories of risk. Which of the following categories of risk
represent the risks that have no possibility for gain:
Pure
In Module 1, we discussed sources of risk. The possibility of a homeowner being sued because
his dog bit his neighbor, is an example of which source of risk:
Liability
Fed Ex & UPS have thousands of trucks on the road every day. The possibility of an auto
accident is:
A peril
You decide to store your extra gasoline cans next to your furnace in the basement. Your house
is destroyed by fire. In this example, what is the house?
An exposure
In Module 1, we discussed the six steps of the risk management process. The preferred
approach to risk identification is:
Combination approach
In Module 1, we discussed the six steps of the risk management process. diversification is a
method of:
Internal risk reduction
Questions & Key Risk Management Concepts
Verified Questions Provided with A+ Graded
Rationales Latest Updated 2026
In Module 1, we discussed hazards. Slippery roads or fog are examples of a:
Physical hazard
In Module 1, we discussed how you measure risk. When measuring risk, frequency is
synonymous with:
Likelihood
In Module 1, we discussed risk (loss) control. Airbags in a vehicle are an example of:
Risk (loss) reduction
In Module 1, we discussed the risk management. Which of the following is one of the "rules
of risk management":
I. Consider the odds
II. Don't risk more than you can afford to lose
III. Minimize risk when possible
I & II
Which of the following allows individuals to substitute a small certain payment for a larger
uncertain possibility of a loss. In other words, what makes insurance possible?
Law of Large Numbers
In Module 1, we discussed risk financing. Paying unanticipated losses out of normal cash
flows is an example of:
Unplanned retention
, In Module 1, we discussed risk measurement. Which of the following is the best measure of
risk:
Standard deviation
In Module 1, we discussed categories of risk. Which of the following categories of risk
represent the risks that have no possibility for gain:
Pure
In Module 1, we discussed sources of risk. The possibility of a homeowner being sued because
his dog bit his neighbor, is an example of which source of risk:
Liability
Fed Ex & UPS have thousands of trucks on the road every day. The possibility of an auto
accident is:
A peril
You decide to store your extra gasoline cans next to your furnace in the basement. Your house
is destroyed by fire. In this example, what is the house?
An exposure
In Module 1, we discussed the six steps of the risk management process. The preferred
approach to risk identification is:
Combination approach
In Module 1, we discussed the six steps of the risk management process. diversification is a
method of:
Internal risk reduction
