RIMS Risk Control & Mitigation Strategies 2

Question 1

Which risk control technique involves restructuring operations so that a single event cannot cause a total loss?

Accepted Answer

Separation of exposures

Answer

Separation of exposures spreads assets or operations across locations so no single event destroys the entire value.

Question 2

A company installs automatic sprinkler systems in its warehouses. This is an example of:

Accepted Answer

Loss reduction

Answer

Loss reduction measures reduce the severity of a loss after it begins; sprinklers limit fire damage once ignition occurs.

Question 3

Which of the following best describes a 'pre-loss' risk control objective?

Accepted Answer

Preventing losses before they happen

Answer

Pre-loss objectives focus on preventing losses from occurring in the first place, not responding after the fact.

Question 4

A pharmaceutical company decides to outsource its hazardous chemical storage to a licensed third party. Which risk control strategy does this represent?

Accepted Answer

Contractual risk transfer (non-insurance)

Answer

Outsourcing hazardous activities to a third party via contract shifts the liability exposure without using an insurance policy.

Question 5

The 'domino theory' of accident causation, developed by H.W. Heinrich, suggests that most accidents result from:

Accepted Answer

A sequence of factors starting with social environment and ending in injury

Answer

Heinrich's domino theory proposes a five-factor chain—social environment, fault of person, unsafe act/condition, accident, injury—where removing any domino prevents the injury.

(RIMS) Risk and Insurance Management Society Certification Practice Test

(RIMS) Risk and Insurance Management Society Certification Practice Test

RIMS Risk Control & Mitigation Strategies 2