CISR Elements of Risk Management Study
Guide Newest 2026 Questions and Correct
Detailed Answers Already Graded A+
1. A company outsources the shipping of its product so that it no longer has a
transportation exposure. This illustrates which risk control technique?
Prevention
Transfer
Reduction
Avoidance - CORRECT ANSWER-Transfer
2. A company stores its finished inventory in regional locations. This illustrates
which risk control technique?
Separation
Segregation
Duplication
Transfer - CORRECT ANSWER-Separation
,3. Lindsay's company has an insurance plan in which they may see some returned
premium based on their actual losses. Lindsay's company has a ___________.
Guaranteed Cost Plan
Deductible Plan
Self-Insurance Plan
Dividend Plan - CORRECT ANSWER-Dividend Plan
4. From the perspective of a __________, an insurable risk is one which generates
enough premium paid by the many to pay for the losses of a few.
actuary
risk manager
underwriter
insurance agent - CORRECT ANSWER-underwriter
5. From the perspective of a __________, an insurable risk is one which is not
reasonably calculable.
risk manager
insurance company
underwriter
actuary - CORRECT ANSWER-risk manager
,1. Reinterpretation of a law causes your company to modify manufacturing
procedures. Which one of the general classes of risk does the example illustrate?
Juridical
Legal
Political
Economic - CORRECT ANSWER-Legal
2. The losses incurred from a tree falling and blocking the entrance to a major
retail store owned by your company would fall under which logical classification
of risk?
Net income
Liability
Property
Human resources - CORRECT ANSWER-Net income
3. Martha is building her risk management team. She is looking for a team
member who can help her calculate development factors. This duty would be
performed by which of the following team members?
Accountant
Agent or broker
, Actuary
RMIS provider - CORRECT ANSWER-Actuary
4. The four logical classifications of exposures are used during the __________
step of the risk management process.
Identification
Analysis
Administration
Control - CORRECT ANSWER-Identification
5. Nicholas believes that the risk control program he has implemented will greatly
reduce the frequency and severity of losses at his company. He now wants to
choose an insurance plan that will be the most cost-effective, taking into
consideration the lower frequency and severity of losses, while maintaining some
carrier services. Which plan would he choose?
Deductible Plan
Dividend Plan
Guaranteed Cost Plan
Self-Insurance - CORRECT ANSWER-Deductible Plan
Guide Newest 2026 Questions and Correct
Detailed Answers Already Graded A+
1. A company outsources the shipping of its product so that it no longer has a
transportation exposure. This illustrates which risk control technique?
Prevention
Transfer
Reduction
Avoidance - CORRECT ANSWER-Transfer
2. A company stores its finished inventory in regional locations. This illustrates
which risk control technique?
Separation
Segregation
Duplication
Transfer - CORRECT ANSWER-Separation
,3. Lindsay's company has an insurance plan in which they may see some returned
premium based on their actual losses. Lindsay's company has a ___________.
Guaranteed Cost Plan
Deductible Plan
Self-Insurance Plan
Dividend Plan - CORRECT ANSWER-Dividend Plan
4. From the perspective of a __________, an insurable risk is one which generates
enough premium paid by the many to pay for the losses of a few.
actuary
risk manager
underwriter
insurance agent - CORRECT ANSWER-underwriter
5. From the perspective of a __________, an insurable risk is one which is not
reasonably calculable.
risk manager
insurance company
underwriter
actuary - CORRECT ANSWER-risk manager
,1. Reinterpretation of a law causes your company to modify manufacturing
procedures. Which one of the general classes of risk does the example illustrate?
Juridical
Legal
Political
Economic - CORRECT ANSWER-Legal
2. The losses incurred from a tree falling and blocking the entrance to a major
retail store owned by your company would fall under which logical classification
of risk?
Net income
Liability
Property
Human resources - CORRECT ANSWER-Net income
3. Martha is building her risk management team. She is looking for a team
member who can help her calculate development factors. This duty would be
performed by which of the following team members?
Accountant
Agent or broker
, Actuary
RMIS provider - CORRECT ANSWER-Actuary
4. The four logical classifications of exposures are used during the __________
step of the risk management process.
Identification
Analysis
Administration
Control - CORRECT ANSWER-Identification
5. Nicholas believes that the risk control program he has implemented will greatly
reduce the frequency and severity of losses at his company. He now wants to
choose an insurance plan that will be the most cost-effective, taking into
consideration the lower frequency and severity of losses, while maintaining some
carrier services. Which plan would he choose?
Deductible Plan
Dividend Plan
Guaranteed Cost Plan
Self-Insurance - CORRECT ANSWER-Deductible Plan
