RIMS Risk Control & Mitigation Strategies 3

Question 1

In risk control, 'engineering controls' are considered more reliable than 'administrative controls' because:

Accepted Answer

They do not depend on human behavior to be effective

Answer

Engineering controls (e.g., machine guards) function automatically without relying on workers following procedures, making them inherently more reliable.

Question 2

The hierarchy of controls ranks which option as the most effective way to eliminate a hazard?

Accepted Answer

Elimination

Answer

Elimination—physically removing the hazard—is ranked highest in the hierarchy because it permanently removes the risk source.

Question 3

Which concept describes the idea that small failures and near-misses indicate systemic weaknesses that can lead to catastrophic events?

Accepted Answer

Swiss Cheese Model

Answer

James Reason's Swiss Cheese Model shows that accidents occur when holes in multiple defensive layers align, each hole representing a latent failure.

Question 4

A risk manager implements a policy requiring dual authorization for large financial transactions. This is best classified as:

Accepted Answer

An administrative control

Answer

Dual-authorization policies are administrative controls—procedural rules that govern human behavior to reduce the risk of errors or fraud.

Question 5

Which metric is most useful for measuring the effectiveness of a loss prevention program over time?

Accepted Answer

Incurred loss trend analysis

Answer

Tracking incurred loss trends over time reveals whether prevention efforts are actually reducing the frequency and severity of losses.

(RIMS) Risk and Insurance Management Society Certification Practice Test

(RIMS) Risk and Insurance Management Society Certification Practice Test

RIMS Risk Control & Mitigation Strategies 3