RMIN 5100S EXAM LATEST UPDATE 2026
Risk manager
Must evaluate risks and determine the best control to manage risks (loss control, retention,
or transfer).
Tangible property
Property that has a physical form
Intangible property
Property that has no physical form
Risk management process
1. identify loss exposures
2. analyze loss exposures
3. select the risk techniques
4. implementing the selected risk management techniques
5. monitoring results and revising RM process
1. identify loss exposures
Involves deciding what assets need to be protected and what perils those assets are
exposed to.
2. analyze loss exposures
Involves calculating the expected significance of a loss. Takes into account frequency and
severity.
Frequency
A measure of how often the loss is expected to happen
Severity
A measure of how detrimental the loss is
The law of large numbers
A principle stating that the larger the number of similar exposure units considered, the
more closely the losses reported will equal what we expect them to be.
, Risk management matrix
Matrix that provides alternative financial action to undertake for each frequency/severity
combination on the risk map.
3. select the risk techniques
The step where the risk manager chooses between risk control and risk financing based on
what is appropriate for the set of loss exposures.
Risk control
Techniques that reduce the frequency or severity of losses. Includes avoidance, loss
prevention, and loss reduction.
Avoidance
Choosing not to do something that is considered too risky
Loss prevention
Reduces the frequency of a particular loss.
Loss reduction
Reduces the severity of a particular loss.
Risk financing
Techniques that provide for payment of losses after they occur. Includes retention and
transfer.
Risk transfer
A pure risk is transferred from one party to another in some form of contract or insurance
policy.
Risk retention
Accepting that some risks simply arise in the course of one’s life and actively (consciously)
retaining that risk. Passive retention is bad.
Duplication
Risk control that involves keeping duplicates of an item or backups of important data in
safe places
Separation
Risk manager
Must evaluate risks and determine the best control to manage risks (loss control, retention,
or transfer).
Tangible property
Property that has a physical form
Intangible property
Property that has no physical form
Risk management process
1. identify loss exposures
2. analyze loss exposures
3. select the risk techniques
4. implementing the selected risk management techniques
5. monitoring results and revising RM process
1. identify loss exposures
Involves deciding what assets need to be protected and what perils those assets are
exposed to.
2. analyze loss exposures
Involves calculating the expected significance of a loss. Takes into account frequency and
severity.
Frequency
A measure of how often the loss is expected to happen
Severity
A measure of how detrimental the loss is
The law of large numbers
A principle stating that the larger the number of similar exposure units considered, the
more closely the losses reported will equal what we expect them to be.
, Risk management matrix
Matrix that provides alternative financial action to undertake for each frequency/severity
combination on the risk map.
3. select the risk techniques
The step where the risk manager chooses between risk control and risk financing based on
what is appropriate for the set of loss exposures.
Risk control
Techniques that reduce the frequency or severity of losses. Includes avoidance, loss
prevention, and loss reduction.
Avoidance
Choosing not to do something that is considered too risky
Loss prevention
Reduces the frequency of a particular loss.
Loss reduction
Reduces the severity of a particular loss.
Risk financing
Techniques that provide for payment of losses after they occur. Includes retention and
transfer.
Risk transfer
A pure risk is transferred from one party to another in some form of contract or insurance
policy.
Risk retention
Accepting that some risks simply arise in the course of one’s life and actively (consciously)
retaining that risk. Passive retention is bad.
Duplication
Risk control that involves keeping duplicates of an item or backups of important data in
safe places
Separation
