Risk Management

Question 1

Front

Answer 1

Back

Question 2

1. Pure or static risk is best described as:
   A) Risk involving only the possibility of loss
   B) A speculative financial investment
   C) A controllable operational hazard
   D) An opportunity for gain or loss

Answer 2

A) Risk involving only the possibility of loss
B) A speculative financial investment
C) A controllable operational hazard
D) An opportunity for gain or loss

Correct: A

Question 3

2. A common risk financing method is:
   A) Self-insuring through current cash flow
   B) Selling assets after loss occurs
   C) Declaring bankruptcy
   D) Reducing exposure through engineering controls

Answer 3

A) Self-insuring through current cash flow
B) Selling assets after loss occurs
C) Declaring bankruptcy
D) Reducing exposure through engineering controls

Correct: A

Question 4

3. Risk is generally characterized as a combination of:
   A) Frequency and exposure
   B) Probability and severity
   C) Hazard and toxicity
   D) Loss and insurance

Answer 4

A) Frequency and exposure
B) Probability and severity
C) Hazard and toxicity
D) Loss and insurance

Correct: B

Question 5

4. In the IEDIM model, the “D” refers to:
   A) Develop solutions
   B) Decide on best course of action
   C) Design controls
   D) Document outcomes

Answer 5

A) Develop solutions
B) Decide on best course of action
C) Design controls
D) Document outcomes

Correct: B

Question 6

5. A key criterion in risk decision-making is:
   A) Societal values
   B) Production levels
   C) Hazard labels
   D) Equipment cost

Answer 6

A) Societal values
B) Production levels
C) Hazard labels
D) Equipment cost

Correct: A

Question 7

6. Core risk management activities include:
   A) Estimation, evaluation, and control
   B) Inspection and investigation
   C) Training and discipline
   D) Engineering and PPE only

Answer 7

A) Estimation, evaluation, and control
B) Inspection and investigation
C) Training and discipline
D) Engineering and PPE only

Correct: A

Question 8

7. ISMEC refers to a structured approach to:
   A) Identify, Set standards, Measure, Evaluate, Correct
   B) Incident response planning
   C) Cost analysis
   D) Legal compliance

Answer 8

A) Identify, Set standards, Measure, Evaluate, Correct
B) Incident response planning
C) Cost analysis
D) Legal compliance

Correct: A

Question 9

8. Risk evaluation primarily considers:
   A) Economic, social, and legal factors
   B) Probability only
   C) Severity only
   D) Insurance premiums

Answer 9

A) Economic, social, and legal factors
B) Probability only
C) Severity only
D) Insurance premiums

Correct: A

Question 10

9. Risk “avoidance” is also known as:
   A) Treatment
   B) Termination
   C) Tolerance
   D) Control

Answer 10

A) Treatment
B) Termination
C) Tolerance
D) Control

Correct: B

Question 11

10. Risk “reduction” is also referred to as:
    A) Termination
    B) Tolerance
    C) Treatment
    D) Transfer

Answer 11

A) Termination
B) Tolerance
C) Treatment
D) Transfer

Correct: C

Question 12

11. The reasonable relationship principle compares:
    A) Risk and severity
    B) Risk and cost of control
    C) Hazard and exposure
    D) Insurance and liability

Answer 12

A) Risk and severity
B) Risk and cost of control
C) Hazard and exposure
D) Insurance and liability

Correct: B

Question 13

12. A hazard occurring continuously at varying exposure levels is a:
    A) Discrete hazard
    B) Continuous hazard
    C) Temporary hazard
    D) Fundamental risk

Answer 13

A) Discrete hazard
B) Continuous hazard
C) Temporary hazard
D) Fundamental risk

Correct: B

Question 14

13. An essential element of a spill prevention plan is:
    A) Preventative maintenance and proper storage
    B) Insurance coverage
    C) Legal audits only
    D) Worker discipline

Answer 14

A) Preventative maintenance and proper storage
B) Insurance coverage
C) Legal audits only
D) Worker discipline

Correct: A

Question 15

14. The first step in identifying significant risks is to:
    A) Assess harm
    B) Describe the system/process
    C) Estimate losses
    D) Select controls

Answer 15

A) Assess harm
B) Describe the system/process
C) Estimate losses
D) Select controls

Correct: B

Question 16

15. Residual risk is:
    A) Risk before controls
    B) Risk remaining after controls
    C) Insurance exposure
    D) Hazard severity

Answer 16

A) Risk before controls
B) Risk remaining after controls
C) Insurance exposure
D) Hazard severity

Correct: B

Question 17

16. In emergency planning, priority is given to:
    A) Property protection
    B) Business continuity
    C) Environmental concerns only
    D) Protection of employees and public

Answer 17

A) Property protection
B) Business continuity
C) Environmental concerns only
D) Protection of employees and public

Correct: D

Question 18

17. Emergency planning should begin with:
    A) Management leadership and commitment
    B) Risk tolerance
    C) Industry standards
    D) Hazard recognition only

Answer 18

A) Management leadership and commitment
B) Risk tolerance
C) Industry standards
D) Hazard recognition only

Correct: A

Question 19

18. Workplace violence does NOT include:
    A) Verbal threat
    B) Physical threat
    C) Heated argument
    D) Threatening gestures

Answer 19

A) Verbal threat
B) Physical threat
C) Heated argument
D) Threatening gestures

Correct: C

Question 20

19. Controls relying heavily on worker compliance are:
    A) Engineering controls
    B) Administrative controls
    C) Elimination
    D) Substitution

Answer 20

A) Engineering controls
B) Administrative controls
C) Elimination
D) Substitution

Correct: B

Question 21

20. Risk management does NOT aim to:
    A) Provide decision framework
    B) Support risk prioritization
    C) Permit substantial risk without evaluation
    D) Aid decision-making under uncertainty

Answer 21

A) Provide decision framework
B) Support risk prioritization
C) Permit substantial risk without evaluation
D) Aid decision-making under uncertainty

Correct: C

Question 22

21. A hazard differs from risk because a hazard:
    A) Has inherent potential to cause harm
    B) Is measured by probability
    C) Equals exposure
    D) Is always controllable

Answer 22

A) Has inherent potential to cause harm
B) Is measured by probability
C) Equals exposure
D) Is always controllable

Correct: A

Question 23

22. IEDIM represents:
    A) Identify, Evaluate, Develop, Implement, Monitor
    B) Inspect, Examine, Decide, Initiate, Measure
    C) Incident Evaluation Model
    D) Industrial Emergency Directive

Answer 23

A) Identify, Evaluate, Develop, Implement, Monitor
B) Inspect, Examine, Decide, Initiate, Measure
C) Incident Evaluation Model
D) Industrial Emergency Directive

Correct: A

Question 24

23. Exposure in risk characterization is:
    A) Part of probability
    B) Part of severity
    C) Independent of probability and severity
    D) Insurance-related

Answer 24

A) Part of probability
B) Part of severity
C) Independent of probability and severity
D) Insurance-related

Correct: A

Question 25

24. Risk estimation differs from evaluation because estimation: A) Quantifies risk level B) Selects controls C) Implements controls D) Transfers risk

Answer 25

**A) Quantifies risk level** B) Selects controls C) Implements controls D) Transfers risk Correct: **A**

Question 26

25. A risk matrix is best described as: A) Probability threshold table B) Severity threshold table C) Decision tree D) Tool categorizing probability and severity

Answer 26

A) Probability threshold table B) Severity threshold table C) Decision tree **D) Tool categorizing probability and severity** Correct: **D**

Question 27

26. The ALARA principle applies when: A) Assessing fatality rates B) Developing exposure guidelines C) Considering reasonable risk reduction D) Eliminating all hazards

Answer 27

A) Assessing fatality rates B) Developing exposure guidelines **C) Considering reasonable risk reduction** D) Eliminating all hazards Correct: **C**

Question 28

27. Weight-of-evidence decision-making requires: A) Timely action without data B) Scientifically defensible evidence C) Lowest possible cost D) Industry opinion

Answer 28

A) Timely action without data **B) Scientifically defensible evidence** C) Lowest possible cost D) Industry opinion Correct: **B**

Question 29

28. ALARA is best described as: A) Any risk reduction B) Middle ground between action and evidence C) Legal requirement only D) Engineering elimination

Answer 29

A) Any risk reduction **B) Middle ground between action and evidence** C) Legal requirement only D) Engineering elimination Correct: **B**

Question 30

29. Correct hierarchy of controls order is: A) Engineering, administrative, PPE B) Substitution, elimination, PPE C) Elimination, substitution, engineering, administrative, PPE D) Administrative, engineering, PPE

Answer 30

A) Engineering, administrative, PPE B) Substitution, elimination, PPE **C) Elimination, substitution, engineering, administrative, PPE** D) Administrative, engineering, PPE Correct: **C**

Question 31

30. The GHS symbol shown represents: A) Health hazard B) Biohazard C) Acute toxicity D) Not a GHS symbol

Answer 31

**A) Health hazard** B) Biohazard C) Acute toxicity D) Not a GHS symbol Correct: **A**