CAFM Risk Management 3

Question 1

A telematics system flags a driver with a hard-braking score in the bottom 10% of the fleet. From a risk management perspective, the FIRST step should be:

Accepted Answer

Conduct a coaching session using the telematics data as evidence

Answer

Coaching with objective data addresses the root behavior and documents the intervention, forming a defensible risk-management record.

Question 2

Which risk transfer mechanism allows a fleet to share large, unpredictable losses with other organizations in the same industry?

Accepted Answer

Risk retention group

Answer

A risk retention group (RRG) is a member-owned liability insurer that allows businesses in the same industry to pool and share liability risks.

Question 3

What is the purpose of an 'experience modification rate' (EMR or X-Mod) in fleet risk management?

Accepted Answer

It adjusts workers' compensation premiums based on actual loss history versus expected losses

Answer

The EMR compares a company's actual claims history to the industry average; an EMR above 1.0 increases premiums and signals higher-than-average risk.

Question 4

A fleet manager is evaluating whether to implement a dash cam program. Which risk management benefit is MOST directly achieved?

Accepted Answer

Faster and more accurate claims resolution with visual evidence

Answer

Dash cam footage provides objective evidence that speeds up claims processing and can exonerate innocent drivers, reducing fraudulent claims.

Question 5

Under a fleet safety program, what does 'near-miss reporting' primarily help the organization accomplish?

Accepted Answer

Identify hazards and correct conditions before they result in an actual loss

Answer

Near-miss reporting is a proactive risk tool that surfaces hazardous conditions or behaviors before they cause injury or property damage.

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM Risk Management 3