RMI 2302 EXAM QUESTIONS WITH
100% CORRECT ANSWERS LATEST
VERSION 2025/2026.
Post-Loss Objectives for an organization include:
Continuity of Operations
Reduction is Anxiety
Social Responsibility - ANS Continuity of Operations and social responsibility
When considering the risk involved in a specific activity, _____________. - ANS Danger and
Risk are not always correlated
Risk prevention methods are best applied to? - ANS High frequency losses.
Tom is a college student at FSU. He has the option to buy a parking pass at the beginning of the
year for $250. If Tom doesn't buy the pass, he has to park on the street or pay the valet parking
service $5 per day. If Tom does not buy the parking pass, he expects to have to use the valet
parking services 40 times. However, he may end up using the valet service up to 80 times. Tom
decides that he would rather pay the $250 than risk not being able to find a spot on the street.
Tom could be described as which of the following: - ANS Risk averse.
Static risks ________________ - ANS Do not change over time
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Every year, Sam vacations in Las Vegas, and has a set budget of $5000 for gambling. Sam's
casino wagering is an example of _______________ - ANS Speculative risk.
When considering organizational risk, businesses have to consider_____________ -
ANS Those risks that prevent the organization from achieving its goals
Which of the following is NOT a type of funded retention?
reserves
self-insurance
captives - ANS All of the above are examples of funded retention.
Which of the following terms describes the immediate cause of loss? - ANS Peril.
Which scenario below has the LEAST amount of risk (uncertainty)? - ANS A window washer
falls from scaffolding that breaks at the 68th floor of Rockefeller center
Risk at the individual level can best be defined as__________ - ANS Uncertainty regarding
loss
Which of the following method(s) best identifies all the risks faced by an organization?
questionnaires
checklists
procedure guides - ANS combination of all of the above.
How does the mathematical measure of Standard Deviation help risk managers? - ANS It
measures the difference between what is expected to happen and what actually happens
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Which of the following is the last step in the risk management process (but often done first)? -
ANS Review and Evaluate
Risk prevention and risk reduction are both included under which of the following? - ANS risk
(loss) control
Carly is involved in a three-car automobile accident. Which type of risk is this an example of? -
ANS particular risk
Which of the following is a common pre-loss objective? - ANS economy
Think about the following statement. "Innovations to make us feel safer often lead to us
changing our habits because we feel safer, thereby increasing risk." Which of the following is an
example of the statement? - ANS Erin just paid ADT to install an alarm system in her house.
Now, she can finally stop worrying about locking her doors at night.
According to chapter 2 of the textbook, which of the following are examples of issues that may
arise that models may predict. - ANS Black swans
Chapter 2 discusses government policies that affect the whole population. Dean Kilpatrick
defines __________ as a "system of laws, regulatory measures, courses of action, and funding
priorities concerning a given topic..." - ANS public policy
What is a main criticism of the mainstream media by risk professionals regarding risk? -
ANS The public often ends up underestimating common risks and exaggerating low risks.
Risks associated with self-driving cars include:
false sense of security
programming errors
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
100% CORRECT ANSWERS LATEST
VERSION 2025/2026.
Post-Loss Objectives for an organization include:
Continuity of Operations
Reduction is Anxiety
Social Responsibility - ANS Continuity of Operations and social responsibility
When considering the risk involved in a specific activity, _____________. - ANS Danger and
Risk are not always correlated
Risk prevention methods are best applied to? - ANS High frequency losses.
Tom is a college student at FSU. He has the option to buy a parking pass at the beginning of the
year for $250. If Tom doesn't buy the pass, he has to park on the street or pay the valet parking
service $5 per day. If Tom does not buy the parking pass, he expects to have to use the valet
parking services 40 times. However, he may end up using the valet service up to 80 times. Tom
decides that he would rather pay the $250 than risk not being able to find a spot on the street.
Tom could be described as which of the following: - ANS Risk averse.
Static risks ________________ - ANS Do not change over time
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Every year, Sam vacations in Las Vegas, and has a set budget of $5000 for gambling. Sam's
casino wagering is an example of _______________ - ANS Speculative risk.
When considering organizational risk, businesses have to consider_____________ -
ANS Those risks that prevent the organization from achieving its goals
Which of the following is NOT a type of funded retention?
reserves
self-insurance
captives - ANS All of the above are examples of funded retention.
Which of the following terms describes the immediate cause of loss? - ANS Peril.
Which scenario below has the LEAST amount of risk (uncertainty)? - ANS A window washer
falls from scaffolding that breaks at the 68th floor of Rockefeller center
Risk at the individual level can best be defined as__________ - ANS Uncertainty regarding
loss
Which of the following method(s) best identifies all the risks faced by an organization?
questionnaires
checklists
procedure guides - ANS combination of all of the above.
How does the mathematical measure of Standard Deviation help risk managers? - ANS It
measures the difference between what is expected to happen and what actually happens
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Which of the following is the last step in the risk management process (but often done first)? -
ANS Review and Evaluate
Risk prevention and risk reduction are both included under which of the following? - ANS risk
(loss) control
Carly is involved in a three-car automobile accident. Which type of risk is this an example of? -
ANS particular risk
Which of the following is a common pre-loss objective? - ANS economy
Think about the following statement. "Innovations to make us feel safer often lead to us
changing our habits because we feel safer, thereby increasing risk." Which of the following is an
example of the statement? - ANS Erin just paid ADT to install an alarm system in her house.
Now, she can finally stop worrying about locking her doors at night.
According to chapter 2 of the textbook, which of the following are examples of issues that may
arise that models may predict. - ANS Black swans
Chapter 2 discusses government policies that affect the whole population. Dean Kilpatrick
defines __________ as a "system of laws, regulatory measures, courses of action, and funding
priorities concerning a given topic..." - ANS public policy
What is a main criticism of the mainstream media by risk professionals regarding risk? -
ANS The public often ends up underestimating common risks and exaggerating low risks.
Risks associated with self-driving cars include:
false sense of security
programming errors
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
