Risk Assessment & Mitigation Flashcards
7 cards from real TRIP 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 Assessment & Mitigation flashcards as text
When evaluating a motor carrier's risk profile, an underwriter focuses on the 'radius of operation' because it affects:
Answer: Driver fatigue exposure and jurisdictional legal environments
Longer radius operations increase driver fatigue risk and expose the carrier to varying state tort environments, both affecting loss potential.
A risk manager for a refrigerated carrier wants to reduce spoilage losses. Which control addresses the root cause most directly?
Answer: Install real-time temperature monitoring with automated alerts
Real-time temperature monitoring allows immediate corrective action before product is compromised, targeting the cause of spoilage losses.
In transportation risk management, 'residual risk' is defined as:
Answer: The exposure that remains after all mitigation controls are applied
Residual risk is what remains after risk avoidance, reduction, and transfer measures have been implemented, and must be accepted or further addressed.
A transportation company's loss runs show a high frequency of minor backing accidents in its yard. The MOST cost-effective mitigation approach is typically:
Answer: Installing cameras and implementing a spotter program for yard movements
Cameras and spotter programs directly reduce backing accident frequency by improving visibility and enforcing safe movement protocols.
Which of the following BEST describes risk retention in a transportation context?
Answer: Paying losses directly from company funds or through a self-insured retention
Risk retention means a company assumes financial responsibility for its own losses, either formally (SIR) or informally (deductibles, captives).
A shipper's contract requires the carrier to maintain $2 million in cargo liability. The carrier currently carries $500,000. This gap represents:
Answer: A contractual coverage gap that exposes the carrier to uninsured loss
The difference between contractual requirements and actual coverage limits creates a coverage gap that leaves the carrier exposed to out-of-pocket loss.
The Carmack Amendment is relevant to transportation risk assessment because it:
Answer: Establishes maximum cargo liability limits for interstate motor carriers
The Carmack Amendment establishes the federal framework for cargo liability of interstate motor carriers, setting the legal backdrop for cargo loss claims.