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
When developing a fleet risk management program, which step should occur BEFORE purchasing insurance?
Answer: Identifying, analyzing, and evaluating all fleet exposures
Risk identification and analysis must precede any risk financing decision so that coverage is properly structured to match actual exposures.
A fleet vehicle is stolen and later recovered with significant damage. Which coverage would pay for repairs to the organization's vehicle?
Answer: Comprehensive coverage
Comprehensive coverage pays for non-collision losses including theft, vandalism, fire, and weather damage to the insured vehicle.
Which metric is MOST useful for benchmarking fleet safety performance against industry peers?
Answer: Accident rate per million miles driven
Accidents per million miles normalizes for fleet size and utilization, enabling valid comparisons across organizations of different sizes.
What is the primary purpose of an indemnification clause in a fleet vendor contract?
Answer: To allocate responsibility for losses and legal costs between the fleet and the vendor
Indemnification clauses contractually assign financial responsibility for claims, losses, and legal expenses to the appropriate party.
A fleet manager notices that rear-end collisions represent 40% of all accidents in the fleet. The risk control tactic MOST likely to reduce this specific type of loss is:
Answer: Mandating following-distance training and monitoring via telematics
Rear-end collisions are primarily caused by following too closely or inattention, both directly addressed by following-distance training and telematics monitoring.
Which document should a fleet manager require from every contractor who operates company vehicles on behalf of the organization?
Answer: Certificate of liability insurance naming the company as an additional insured
A certificate of insurance with the company named as an additional insured confirms the contractor has coverage and that the company is protected under that policy.
Under the Americans with Disabilities Act (ADA), what obligation does a fleet manager have when a driver requests an accommodation due to a medical condition?
Answer: Engage in an interactive process to determine whether a reasonable accommodation exists that allows the driver to safely perform essential functions
The ADA requires employers to engage in a good-faith interactive process with the employee to explore reasonable accommodations before making any adverse employment decision.