RMIN 5100S EXAM #1 QUEESTIONS & ANSWERS
What are the two different categories of property? What is the difference between the
two? - Answer -The two different types of property are tangible and intangible property.
- Tangible property is property that has a physical form, such as a piece of equipment
- Intangible property is property that has no physical form, such as a patent or copyright
What are the two types of tangible property? What are their differences? - Answer -
Real Property and Personal Property
- Real Property = tangible property consisting of land, all structures permanently
attached to it, and whatever is growing on it.
- Personal Property = all tangible or intangible property that is not real property
What two losses does a property owner experience when their personal property is
stolen? - Answer -They suffer a total loss of that property and any possible income that
could have been generated by that property.
List the six steps in the risk management process - Answer -1. Identify Loss Exposures
2. Analyze Loss Exposures
3. Examine Feasibility of Risk Management Techniques
4. Select Appropriate Risk Management Technique(s)
5. Implement Selected Risk Management Technique(s)
6. Monitor Results + Revise Risk Management Program
What are risk financing techniques? - Answer -Risk financing techniques are risk
management techniques that generate funds to finance losses that risk control
techniques cannot entirely prevent or reduce
What are the different types of risk financing techniques? - Answer -1. Retention =
generating funds from within an organization to pay for losses
2. Transfer = generating funds from outside an organization to pay for losses (like
insurance)
What are risk control techniques? - Answer -Risk management techniques that
minimize the frequency or severity of losses, or make those losses more predictable
What are the different types of risk control techniques? - Answer -1. Avoidance
2. Loss prevention (reduces frequency)
3. Loss reduction (reduces severity)
4. Separation
5. Diversification
What is a hostile fire? - Answer -A fire that leaves its intended place, such as a spark
that escapes a fireplace and sets the carpet on fire
, How does construction type influence fire control? - Answer -The definitions of
construction types from the ISO indicate the fire resistance of several types of
construction:
- Wood frame = exterior walls are constructed of wood or other combustible materials
(most susceptible)
- Jointed masonry = exterior walls are constructed of masonry materials such as brick or
stone, with other supporting elements such as joints and beams made of wood (less
combustible than wooden frame)
- Noncombustible construction = exterior walls, floor, and roof are constructed of and
supported by metal, gypsum, or other noncombustible materials.
What are the two common approaches to risk control measures? - Answer -1. The
Engineering Approach = attacking hazards by reviewing and improving the design and
location of properties and equipment to reduce the # of hazards
2. The Human Behavior Approach = attacking hazards by modifying people's behavior
to reduce the frequency of unsafe acts
What are the four elements of a fire that fire prevention must eliminate in some
capacity? - Answer -1. An initial heat source (electrical, chemical, mechanical)
2. Oxygen (ordinary air or something else)
3. Fuel (contents and construction materials for buildings
4. An uninterrupted chain reaction, which causes the fire to flame up and spread.
What are the two types of fire protection, and what are examples of each? - Answer -
Internal fire protection = automatic fire detection/suppression systems (sprinklers),
portable extinguishers, etc.
External fire protection = accessible fire hydrants for the fire department
Differentiate between the three most common types of theft that are often the focus of
theft risk control - Answer -1. Burglary = theft by someone who forcibly enters the place
where the property is kept
2. Robbery = involves the use (or threat) of force against the person from whom the
property is taken
3. Employee theft = theft that an employee commits against his/her own employer.
What are some risk control measures for employee theft? - Answer -Accounting
controls, access controls, background checks, separation of duties, vacations, etc.
Describe the proper handling of explosive materials to prevent initial combustion that
leads to explosion - Answer -- The material may be kept in a low-oxygen or an oxygen-
free atmosphere, where most of the air in a chamber is replaced with inert gas, such as
carbon dioxide or nitrogen
What are the two different categories of property? What is the difference between the
two? - Answer -The two different types of property are tangible and intangible property.
- Tangible property is property that has a physical form, such as a piece of equipment
- Intangible property is property that has no physical form, such as a patent or copyright
What are the two types of tangible property? What are their differences? - Answer -
Real Property and Personal Property
- Real Property = tangible property consisting of land, all structures permanently
attached to it, and whatever is growing on it.
- Personal Property = all tangible or intangible property that is not real property
What two losses does a property owner experience when their personal property is
stolen? - Answer -They suffer a total loss of that property and any possible income that
could have been generated by that property.
List the six steps in the risk management process - Answer -1. Identify Loss Exposures
2. Analyze Loss Exposures
3. Examine Feasibility of Risk Management Techniques
4. Select Appropriate Risk Management Technique(s)
5. Implement Selected Risk Management Technique(s)
6. Monitor Results + Revise Risk Management Program
What are risk financing techniques? - Answer -Risk financing techniques are risk
management techniques that generate funds to finance losses that risk control
techniques cannot entirely prevent or reduce
What are the different types of risk financing techniques? - Answer -1. Retention =
generating funds from within an organization to pay for losses
2. Transfer = generating funds from outside an organization to pay for losses (like
insurance)
What are risk control techniques? - Answer -Risk management techniques that
minimize the frequency or severity of losses, or make those losses more predictable
What are the different types of risk control techniques? - Answer -1. Avoidance
2. Loss prevention (reduces frequency)
3. Loss reduction (reduces severity)
4. Separation
5. Diversification
What is a hostile fire? - Answer -A fire that leaves its intended place, such as a spark
that escapes a fireplace and sets the carpet on fire
, How does construction type influence fire control? - Answer -The definitions of
construction types from the ISO indicate the fire resistance of several types of
construction:
- Wood frame = exterior walls are constructed of wood or other combustible materials
(most susceptible)
- Jointed masonry = exterior walls are constructed of masonry materials such as brick or
stone, with other supporting elements such as joints and beams made of wood (less
combustible than wooden frame)
- Noncombustible construction = exterior walls, floor, and roof are constructed of and
supported by metal, gypsum, or other noncombustible materials.
What are the two common approaches to risk control measures? - Answer -1. The
Engineering Approach = attacking hazards by reviewing and improving the design and
location of properties and equipment to reduce the # of hazards
2. The Human Behavior Approach = attacking hazards by modifying people's behavior
to reduce the frequency of unsafe acts
What are the four elements of a fire that fire prevention must eliminate in some
capacity? - Answer -1. An initial heat source (electrical, chemical, mechanical)
2. Oxygen (ordinary air or something else)
3. Fuel (contents and construction materials for buildings
4. An uninterrupted chain reaction, which causes the fire to flame up and spread.
What are the two types of fire protection, and what are examples of each? - Answer -
Internal fire protection = automatic fire detection/suppression systems (sprinklers),
portable extinguishers, etc.
External fire protection = accessible fire hydrants for the fire department
Differentiate between the three most common types of theft that are often the focus of
theft risk control - Answer -1. Burglary = theft by someone who forcibly enters the place
where the property is kept
2. Robbery = involves the use (or threat) of force against the person from whom the
property is taken
3. Employee theft = theft that an employee commits against his/her own employer.
What are some risk control measures for employee theft? - Answer -Accounting
controls, access controls, background checks, separation of duties, vacations, etc.
Describe the proper handling of explosive materials to prevent initial combustion that
leads to explosion - Answer -- The material may be kept in a low-oxygen or an oxygen-
free atmosphere, where most of the air in a chamber is replaced with inert gas, such as
carbon dioxide or nitrogen
