RMIN 5100S Exam 1 Questions and Answers Already Passed
Risk Control Techniques - Answers 1. Avoidance
2. Loss Prevention
3. Loss Reduction
4. Separation
5. Duplication
6. Diversification
duplication - Answers the idea of backing up information
avoidance - Answers completely eliminating risk to 0% chance of loss
loss prevention - Answers reducing the frequency of loss
loss reduction - Answers reducing the severity of loss
separation - Answers spreading risk to different locations.
Diversification - Answers providing a range of products and services used by a variety of
customers
Total Cost of Risk (TCOR) - Answers cost of losses retained + risk control costs + cost of risk
transferred + administrative costs
Frequency Severity Matrix - Answers
insured - Answers buyers of insurance
intermediary - Answers facilitates the purchase of insurance
-advises insured and negotiates with insurer
Insurer - Answers provides insurance coverage
-aka carrier/insurance company
risk manager - Answers evaluate risks and determine the best approach to manage risks
, -inlcuding loss control, retention and transfer techniques
Risk Management Process - Answers 1. Identifying loss exposures
2. Analyzing loss exposures
3. Examining feasibility of risk management techniques
4. Selecting the appropriate risk management techniques
5. Implementing selected risk management techniques
6. Monitoring results and revising the risk management program
Identifying loss exposures - Answers document analysis; compliance review; inspections;
expertise within and beyond the organization
Analyzing loss exposures - Answers 1. loss frequency
2. loss severity
3. Total dollar losses (total dollar amount of losses for all occurrences during a specified time
period)
4. Timing (when losses occur and when loss payments are made)
Examining the Feasibility of Risk Management Techniques - Answers 1. Risk Control
Techniques
2. Risk Financing Techniques
Risk Financing Techniques - Answers 1. Retention: generating funds from within the
organization to pay for losses
2. transfer: generating funds from outside the organization to pay for losses and includes
insurance and noninsurance transfer
Selecting Risk Management Technique - Answers 1. Avoid
2. Retain
3. Transfer (insurance)
4. Control
Implement and Monitor Risk Management Techniques - Answers -requires cooperation within
an organizations departments
-requires creating coverages
Risk Control Techniques - Answers 1. Avoidance
2. Loss Prevention
3. Loss Reduction
4. Separation
5. Duplication
6. Diversification
duplication - Answers the idea of backing up information
avoidance - Answers completely eliminating risk to 0% chance of loss
loss prevention - Answers reducing the frequency of loss
loss reduction - Answers reducing the severity of loss
separation - Answers spreading risk to different locations.
Diversification - Answers providing a range of products and services used by a variety of
customers
Total Cost of Risk (TCOR) - Answers cost of losses retained + risk control costs + cost of risk
transferred + administrative costs
Frequency Severity Matrix - Answers
insured - Answers buyers of insurance
intermediary - Answers facilitates the purchase of insurance
-advises insured and negotiates with insurer
Insurer - Answers provides insurance coverage
-aka carrier/insurance company
risk manager - Answers evaluate risks and determine the best approach to manage risks
, -inlcuding loss control, retention and transfer techniques
Risk Management Process - Answers 1. Identifying loss exposures
2. Analyzing loss exposures
3. Examining feasibility of risk management techniques
4. Selecting the appropriate risk management techniques
5. Implementing selected risk management techniques
6. Monitoring results and revising the risk management program
Identifying loss exposures - Answers document analysis; compliance review; inspections;
expertise within and beyond the organization
Analyzing loss exposures - Answers 1. loss frequency
2. loss severity
3. Total dollar losses (total dollar amount of losses for all occurrences during a specified time
period)
4. Timing (when losses occur and when loss payments are made)
Examining the Feasibility of Risk Management Techniques - Answers 1. Risk Control
Techniques
2. Risk Financing Techniques
Risk Financing Techniques - Answers 1. Retention: generating funds from within the
organization to pay for losses
2. transfer: generating funds from outside the organization to pay for losses and includes
insurance and noninsurance transfer
Selecting Risk Management Technique - Answers 1. Avoid
2. Retain
3. Transfer (insurance)
4. Control
Implement and Monitor Risk Management Techniques - Answers -requires cooperation within
an organizations departments
-requires creating coverages
