RIMS Cheat Sheet 2026

The 30 highest-yield RIMS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under a professional liability (E&O) policy, the 'wrongful act' trigger typically includes all of the following EXCEPT: → Intentional fraud committed by the insured
2. A client asks their risk advisor to help prioritize risks using a heat map. What does a heat map primarily plot? → Likelihood of occurrence versus potential severity of impact
3. A company has $50M in annual premiums and $45M in incurred losses. Its expense ratio is 30%. What is the combined ratio? → 120%
4. Which of the following is a common type of insurance for businesses? → Cybersecurity insurance
5. A RIMS member is asked to provide a risk assessment for a project in an area outside their expertise. The ethical response is to: → Disclose limitations and collaborate with a qualified expert
6. The concept of 'risk interdependency' is important in risk identification because: → It helps identify how one risk event can trigger or amplify other risks
7. Under a fiduciary liability policy, coverage is triggered when a plan fiduciary commits a 'breach of fiduciary duty' as defined under: → The Employee Retirement Income Security Act (ERISA)
8. A pharmaceutical company assesses the probability that a drug trial will fail due to unforeseen side effects. This is an example of evaluating: → Strategic risk
9. Why is it important to assess the likelihood of identified risks? → To track employee performance
10. In workers' compensation insurance, the 'experience modification factor' (EMR) reflects: → The insured's past loss experience relative to its industry peers
11. Which loss control strategy is most appropriate when the frequency of losses is high but severity is low? → Loss prevention
12. Which type of risk involves the potential for loss arising from failed internal processes, people, systems, or external events? → Operational risk
13. Which of the following BEST describes the purpose of an organization's 'code of conduct' from a risk management perspective? → To establish behavioral standards that reduce ethical and compliance risk
14. Which documentation requirement is specific to the National Flood Insurance Program (NFIP) when filing a flood claim? → A sworn proof of loss within 60 days of loss
15. What is the appropriate response to witnessing unethical conduct by a colleague? → Report the conduct through established channels and document observations
16. Why is continuing education important for maintaining ethical practice? → It ensures practitioners stay current with evolving standards and best practices
17. An organization uses job safety analyses (JSAs) to document each step of a task and identify associated hazards. JSAs are primarily a tool for: → Developing administrative controls and safe work procedures
18. Which type of risk advisory engagement focuses on identifying gaps between a client's current insurance program and their actual risk exposures? → Coverage gap analysis
19. What is the purpose of environmental scanning in strategic planning? → To identify external factors that may impact organizational success
20. Under the U.S. Longshoremen and Harbor Workers' Compensation Act (LHWCA), employers must file what document to report a workplace injury? → LS-202 Employer's First Report of Injury
21. What should be considered when analyzing insurance coverage for a business? → Employee behavior
22. How can training contribute to risk control? → By tracking employee performance
23. Which metric is most useful for measuring the effectiveness of a loss prevention program over time? → Incurred loss trend analysis
24. Which risk financing technique allows a company to pre-fund expected losses in a tax-advantaged offshore structure? → Funded captive insurance company
25. How should client communications be documented? → Maintain detailed records of all substantive communications and decisions
26. A business continuity plan (BCP) primarily addresses which post-loss objective? → Ensuring survival of the organization after a loss
27. Under a surety bond, which party is obligated to perform the underlying contractual duty? → Principal
28. What is the primary obligation of a certified professional regarding patient/client confidentiality? → Protect all personal information and disclose only with proper authorization
29. Under RIMS ethical guidelines, confidential risk information obtained during professional duties may be disclosed when: → Required by law or authorized by the client/employer
30. Which financial planning concept involves setting aside funds annually to accumulate sufficient assets to fund a large future self-insured loss? → Funded reserve or sinking fund approach