Risk Control & Mitigation Strategies Flashcards
7 cards from real RIMS 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 Control & Mitigation Strategies flashcards as text
Which of the following is the primary purpose of a risk control self-assessment (RCSA)?
Answer: To enable business units to identify and evaluate their own risks and controls
RCSA empowers operational managers and staff to identify risks and assess the adequacy of existing controls within their own business units.
A manufacturer installs a pressure relief valve on a boiler to prevent explosions. This is an example of:
Answer: Loss prevention through engineering control
A pressure relief valve is an engineering control that automatically prevents the hazardous condition (overpressure) from developing into an explosion.
The term 'inherent risk' refers to:
Answer: The gross risk exposure before any controls are applied
Inherent risk is the level of risk that exists naturally in a process or activity before any mitigation or control measures are in place.
Which of the following scenarios best illustrates the concept of 'residual risk'?
Answer: A company installs fire suppression but still faces a small residual chance of fire loss
Residual risk is the risk remaining after controls have been applied; even with fire suppression, some fire loss potential remains.
An organization uses job safety analyses (JSAs) to document each step of a task and identify associated hazards. JSAs are primarily a tool for:
Answer: Developing administrative controls and safe work procedures
JSAs break tasks into steps, identify hazards at each step, and develop safe procedures—making them a foundation for administrative controls.
Which loss control strategy is MOST appropriate when severity potential is catastrophic but frequency is very low?
Answer: Combine loss reduction with risk transfer to handle residual catastrophic exposure
Low-frequency/high-severity risks warrant loss reduction measures (to limit impact) plus risk transfer (e.g., insurance) to finance the residual catastrophic exposure.
Which principle holds that safety investments should be made as long as the cost of additional control does not exceed the expected reduction in loss cost?
Answer: Marginal cost-benefit principle
The marginal cost-benefit principle guides loss control investment decisions by comparing the additional cost of a control to the additional reduction in expected losses.