RMIN 5100S - Test 3 (Atkinson) Questions and Answers | Latest Update | 2024/2025 | 100% Verified
10 views 0 purchase
Course
RMIN 5100S -
Institution
RMIN 5100S -
RMIN 5100S - Test 3 (Atkinson)
Questions and Answers | Latest Update |
2024/2025 | 100% Verified
What is the purpose of a risk avoidance strategy?
Risk avoidance eliminates the chance of loss by avoiding activities or situations that pose a
risk.
What is the concept of risk tolerance...
RMIN 5100S - Test 3 (Atkinson)
Questions and Answers | Latest Update |
2024/2025 | 100% Verified
What is the purpose of a risk avoidance strategy?
✔✔ Risk avoidance eliminates the chance of loss by avoiding activities or situations that pose a
risk.
What is the concept of risk tolerance?
✔✔ Risk tolerance refers to the level of risk an organization or individual is willing to accept
while pursuing objectives.
Why is it essential to document risk management processes?
✔✔ Documenting risk management processes ensures consistency, allows for review, and
provides a reference for future risk-related decisions.
What is the difference between hazard risk and financial risk?
✔✔ Hazard risk arises from potential physical losses, like property damage, while financial risk
involves uncertainty in financial outcomes, such as investment losses.
1
,How can contractual agreements be used in risk management?
✔✔ Contractual agreements can allocate responsibility for certain risks, such as through
indemnification clauses, reducing the organization's exposure.
What is the role of loss prevention in risk management?
✔✔ Loss prevention involves actions taken to reduce the frequency or severity of potential
losses, such as safety measures.
How do contingency plans support risk management?
✔✔ Contingency plans provide a roadmap for responding to unexpected risks, ensuring business
continuity in case of disruptions.
What are residual risks?
✔✔ Residual risks are the risks that remain after all mitigation efforts have been implemented.
Why is scenario analysis used in risk management?
✔✔ Scenario analysis helps evaluate how different risk scenarios could impact an organization,
aiding in preparation and response planning.
2
,What is the importance of compliance in risk management?
✔✔ Compliance ensures that the organization adheres to legal and regulatory standards,
reducing the risk of penalties or reputational damage.
What is the main objective of risk management in a business?
✔✔ The main objective is to minimize potential losses and protect the organization by
identifying and addressing risks.
How does insurance contribute to risk management?
✔✔ Insurance provides financial protection by shifting the cost of certain risks from the business
to the insurer.
What is risk retention?
✔✔ Risk retention occurs when a business chooses to handle certain risks internally rather than
transferring them to an insurer.
Why conduct a risk assessment?
3
, ✔✔ A risk assessment helps identify threats and vulnerabilities, allowing for proactive measures
to reduce potential impacts.
What is the distinction between pure risk and speculative risk?
✔✔ Pure risk involves only the chance of loss, while speculative risk involves both the
possibility of loss and potential gain.
What is the role of a risk manager?
✔✔ A risk manager identifies risks and implements strategies to manage and mitigate them
within an organization.
How does diversification reduce risk?
✔✔ Diversification lowers risk by spreading exposure across different activities or investments,
reducing the impact of any single loss.
What is risk transfer?
✔✔ Risk transfer shifts financial responsibility for potential losses to another party, typically
through insurance or contracts.
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SterlingScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.61. You're not tied to anything after your purchase.
