Travel Risk Assessment & Management 4 — Questions and Answers
Question 1: Which of the following is the BEST example of transferring travel risk?
- Avoiding high-crime neighborhoods
- Purchasing comprehensive travel insurance (Correct answer)
- Traveling during daylight hours only
- Carrying a photocopy of your passport
Correct answer: Purchasing comprehensive travel insurance
Buying insurance transfers the financial burden of a realized risk (medical emergency, cancellation, theft) to the insurer rather than absorbing it yourself.
Question 2: A traveler with a known nut allergy is visiting a country where the local cuisine heavily features peanuts. What is the MOST effective pre-trip risk management step?
- Assume restaurant staff will understand dietary restrictions
- Learn how to say 'I am allergic to peanuts' in the local language and carry a translated allergy card (Correct answer)
- Only eat at American fast-food chains
- Bring peanut butter to trade for non-peanut dishes
Correct answer: Learn how to say 'I am allergic to peanuts' in the local language and carry a translated allergy card
A translated allergy card combined with verbal communication maximizes the chance that local restaurant staff understand and act on the life-threatening restriction.
Question 3: What is the recommended safe minimum amount of local currency a traveler should carry as an emergency cash reserve abroad?
- Enough for one cup of coffee
- Enough to cover a taxi to the nearest hospital and a one-night hotel stay (Correct answer)
- Several thousand dollars in mixed denominations
- No cash at all — credit cards work everywhere
Correct answer: Enough to cover a taxi to the nearest hospital and a one-night hotel stay
Keeping enough local cash for an emergency taxi ride and one night of lodging ensures you can respond to a crisis if cards are lost, stolen, or declined.
Question 4: Which action best illustrates the risk management principle of 'avoidance'?
- Buying trip cancellation insurance before visiting a conflict zone
- Choosing not to travel to a country under a Level 4 'Do Not Travel' advisory (Correct answer)
- Wearing a money belt in a high-pickpocket area
- Registering with STEP before departing
Correct answer: Choosing not to travel to a country under a Level 4 'Do Not Travel' advisory
Avoidance means eliminating the risk entirely by not engaging in the activity — in this case, not traveling to the dangerous destination at all.
Question 5: Why is it important to check whether your domestic health insurance covers you internationally before a trip?
- International hospitals may charge higher prices to foreign insurers
- Many U.S. health insurance plans provide no coverage or very limited coverage outside the country (Correct answer)
- International coverage automatically upgrades your domestic plan tier
- Foreign hospitals always require U.S. insurance cards for admission
Correct answer: Many U.S. health insurance plans provide no coverage or very limited coverage outside the country
Most U.S. health insurance plans, including many Medicare plans, do not cover emergency medical care abroad, leaving travelers exposed to significant out-of-pocket costs.
Question 6: A traveler is hiking in a remote national park with no cell service. Which risk mitigation tool is MOST appropriate?
- A standard smartphone with Google Maps downloaded
- A satellite communicator or personal locator beacon (PLB) (Correct answer)
- An extra power bank for the cell phone
- A paper map of the nearest city
Correct answer: A satellite communicator or personal locator beacon (PLB)
A satellite communicator or PLB sends distress signals via satellite networks, operating independently of cellular infrastructure in areas without coverage.
Question 7: What does 'residual risk' mean in the context of travel safety planning?
- Risk that has been fully eliminated through insurance
- The level of risk that remains after all mitigation measures have been applied (Correct answer)
- Risk associated only with the return leg of a trip
- Risks that were not identified during initial planning
Correct answer: The level of risk that remains after all mitigation measures have been applied
Residual risk is what remains after you have taken all feasible precautions; accepting or insuring against it is the final step in the risk management cycle.
Travel Risk Assessment & Management 4
Which of the following is the BEST example of transferring travel risk?