Risk Management Flashcards
7 cards from real CAFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management flashcards as text
Which document formally transfers liability for a fleet vehicle to a third-party vendor performing off-site maintenance?
Answer: Hold harmless agreement
A hold harmless agreement contractually shifts liability to the vendor while the vehicle is in their care, custody, and control.
A fleet manager discovers that 15% of drivers have undisclosed moving violations from the past year. The BEST corrective action is to:
Answer: Implement a motor vehicle record (MVR) monitoring program with automatic alerts
Continuous MVR monitoring catches violations as they occur, enabling timely intervention rather than annual surprises.
In fleet risk management, 'frequency' and 'severity' are used to:
Answer: Prioritize which risks to address first using a risk matrix
A risk matrix plots frequency (likelihood) against severity (impact) to help fleet managers allocate resources to the highest-priority risks.
Which type of fleet insurance coverage pays for damage to the fleet vehicle regardless of who is at fault in an accident?
Answer: Collision coverage
Collision coverage pays for physical damage to the insured vehicle from an accident, regardless of fault.
A fleet manager wants to reduce the financial impact of high-frequency, low-severity claims. The MOST cost-effective strategy is typically to:
Answer: Self-insure or retain those losses with a higher deductible
High-frequency, low-severity losses are predictable and often cost less to self-retain than to pay premiums for insuring them.
Which federal regulation requires employers to verify commercial driver's license (CDL) status and driving history before hiring?
Answer: FMCSA 391.23 — Investigations and inquiries
FMCSA 49 CFR §391.23 requires motor carriers to investigate each driver applicant's employment history and driving record.
Post-accident drug and alcohol testing under DOT regulations must be completed within what timeframe for alcohol?
Answer: 2 hours (with an 8-hour limit for testing)
DOT regulations require post-accident alcohol testing as soon as practicable but within 2 hours; after 8 hours, testing must be abandoned.