RMI 2302 Exam 1 1 In Module 1 we discussed hazards Slippery roads or fog are examples of a 2 In Module 1 we discussed how you measure risk When measuring risk frequency is synonymous A Physical hazard B Moral hazard C Societal hazard D Liability hazard E Hazardous environment with A Impact B Likelihood C Severity D Expected value E Standard deviation A Risk loss prevention B Risk loss reduction C Investments in information D Retention E Hedging 3 In Module 1 we discussed risk loss control Air bags in a vehicle are an example of 4 In Module 1 we discussed the risk management Which of the following is one of the rules of risk management I Consider the odds II Don t risk more than you can afford to lose III Minimize risk when possible A I only we manage risks we don t always minimize some risks are worth B II only taking it depends on the risk the reward C I II D II III E I II III 5 Which of the following allows individuals to substitute a small certain payment for a larger uncertain possibility of a loss In other words what makes insurance possible A Expected Value B Standard Deviation C Law of Large Numbers D All of the above E None of the above 6 In Module 1 we discussed risk financing Paying unanticipated losses out of normal cash flows is an example of A Funded retention hard question key word here is unanticipated losses didn t B Unfunded retention see them coming so it is unplanned retention since it was C Transfer unplanned also will be unfunded D Unplanned retention E All of the above 7 In Module 1 we discussed risk measurement Which of the following is the best measure of risk 8 In Module 1 we discussed categories of risk Which of the following categories of risk represent the risks that have no possibility for gain 9 In Module 1 we discussed sources of risk The possibility of a homeowner being sued because his dog bit his neighbor is an example of which source of risk 10 Fed Ex UPS have thousands of trucks on the road every day The possibility of an auto accident is 11 You decide to store your extra gasoline cans next to your furnace in the basement Your house is destroyed by fire In this example what is the house 12 In Module 1 we discussed the six steps of the risk management process The preferred approach to risk identification is A Expected value B Expected utility C Standard deviation D All of the above E None of the above A Secondary B Speculative C Fundamental D Pure E None of the above A Personal B Property C Liability D Static E Dynamic A An exposure B A peril C A hazard D Adverse selection E Moral hazard A An exposure B A peril C A hazard D Adverse selection E Moral hazard A Questionnaires B Checklists C Procedure guides D Contract analysis E Combination approach A Risk loss control B Risk loss financing C Internal risk reduction 13 In Module 1 we discussed the six steps of the risk management process diversification is a method of 14 In Module 1 we discussed the six steps of the risk management process retention is an example of D Investments in information E None of the above A Risk loss control B Risk loss financing C Internal risk reduction D Retention E Hedging 15 In Module 1 we defined risk What gets added to the definition of risk when looking at it from the organizational level A adversely affect the achievement of an organization s objectives B that impacts a large portion of the population C no change in definition D All of the above E None of the above is aimed at 16 In Module 1 we discussed the six steps of the risk management process Risk loss prevention A Frequency prevention is aimed at frequency reduction is aimed at B Severity severity C Both frequency and severity D Retention E None of the above 17 In Module 1 we discussed the six steps of the risk management process The primary post loss objective of an organization is A Profitability B Survival C Social Activism D Retention E None of the above is a step in the risk management process I Determine Objectives II Identify Risks III Review Evaluate 18 In Module 1 we discussed the six steps of the risk management process Which of the following A I only Consider this a series of true false questions is I true Is II true B II only Is III true C I II D I III E I II III 19 Olivia fails to be careful with her laptop because she purchased the insurance coverage on it Olivia s behavior is an example of A Physical hazard B Moral hazard C Adverse selection D Genetic predisposition 20 Avoidance avoiding risky activity is a method of E Teenagerism A Risk loss control B Risk loss financing C Internal risk reduction D Retention E Hedging on society I Risk aversion II Need for larger emergency funds III The loss of additional of goods and services 21 In Module 1 we discussed the costs associated with risk Which of the following is a burden of risk 22 One of the core themes of Module 2 is that risk reduction as part of public policy has the following 23 The scientific approach to managing risk Module 2 incorporates 24 In Module 2 we talk about innovation risk Innovation changes the trade off between risk and 25 Which of the following are examples of the risks that could be associated with self drive cars A I only B III only C I II D II III E I II III costs I Monetary II Societal utility III Non monetary A I only B II only C III only D I and II E I and III A Adverse effects B A time element C A possibility of death D All of the above E None of the above A Cost B Risk relatives C Regulation D All of the above E None of the above I Reduced traffic fatalities II Computer malfunctions III Reduced health care costs A I only B II only 26 In Module 2 we modified Morton s ideas related to managing innovation Which of the following is NOT one of the four steps to managing innovation risk I Create and use a model II Be prepared III Things occur in a vacuum 27 In the discussion of innovation risks we noted that all models are 28 Which of the following shows the amount of profit earned in each outcome by adopting a course C I and II D I and III E I II III A I only B II only C III only D I II E II III A incomplete B incorrect C incongruent D limited E perfect of action I Regret Table II Expected Value III Payoff Table A I only B II only C III only D I and III E …
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