RMIN 2005 - Exam 1 Questions and
Answers Graded A+
A conscious decision not to expose oneself or one's firm to a particular risk of loss
is... - Correct answer-risk avoidance
Which domino does Heinrich's Domino Theory suggest is the most important to
focus on in reducing the frequency of workplace injuries ? - Correct answer-Unsafe
act or physical hazard
It is usually easier to estimate the potential costs associated with a loss control
project than the potential benefits. (True/False) - Correct answer-True
The TWO necessary elements of self-insurance are... - Correct answer-A - A group
of exposure units large enough to ensure accurate loss prediction.
B - The expected losses must be prefunded through a fund especially designed for
that purpose.
Storing your inventory in two different locations is an example of... - Correct
answer-separation
Making two copies of keys is an example of... - Correct answer-duplication
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, What is the title for a new senior executive role some organizations created to
oversee enterprise risk management? - Correct answer-Chief risk officer
The concept of enterprise risk management suggests that diversification has little
relevance to risk management. (True/False) - Correct answer-False
What type of surety bond guarantees work will be completed according to
specifications? - Correct answer-Performance bond
[This Risk Identification Method] can help a business identify typical items of
property and activities for a specific industry - Correct answer-Loss exposure
checklist
[This Risk Identification Method] can help identify property values and sources of
cash - Correct answer-Financial Statement Analysis
[This Risk Identification Method] can help identify potential bottlenecks. - Correct
answer-Flow chart analysis
[This Risk Identification Method] can identify who is liable when a loss occurs -
Correct answer-Contract analysis
[This Risk Identification Method] can be used with an RMIS to analyze losses -
Correct answer-Statistical analysis
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Answers Graded A+
A conscious decision not to expose oneself or one's firm to a particular risk of loss
is... - Correct answer-risk avoidance
Which domino does Heinrich's Domino Theory suggest is the most important to
focus on in reducing the frequency of workplace injuries ? - Correct answer-Unsafe
act or physical hazard
It is usually easier to estimate the potential costs associated with a loss control
project than the potential benefits. (True/False) - Correct answer-True
The TWO necessary elements of self-insurance are... - Correct answer-A - A group
of exposure units large enough to ensure accurate loss prediction.
B - The expected losses must be prefunded through a fund especially designed for
that purpose.
Storing your inventory in two different locations is an example of... - Correct
answer-separation
Making two copies of keys is an example of... - Correct answer-duplication
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, What is the title for a new senior executive role some organizations created to
oversee enterprise risk management? - Correct answer-Chief risk officer
The concept of enterprise risk management suggests that diversification has little
relevance to risk management. (True/False) - Correct answer-False
What type of surety bond guarantees work will be completed according to
specifications? - Correct answer-Performance bond
[This Risk Identification Method] can help a business identify typical items of
property and activities for a specific industry - Correct answer-Loss exposure
checklist
[This Risk Identification Method] can help identify property values and sources of
cash - Correct answer-Financial Statement Analysis
[This Risk Identification Method] can help identify potential bottlenecks. - Correct
answer-Flow chart analysis
[This Risk Identification Method] can identify who is liable when a loss occurs -
Correct answer-Contract analysis
[This Risk Identification Method] can be used with an RMIS to analyze losses -
Correct answer-Statistical analysis
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
