R120

Question 1

A risk manager foresees rising costs of fuel to be a potential risk for his company, and he is contemplating treatment options. In which stage of the risk assessment process did this occur?

Answer 1

Risk analysis

To read more, see page 1.05

Question 2

According to the Domino Theory, what precedes an unsafe act and/or mechanical or physical hazard?

Answer 2

Fault of person

To read more, see page 1.18

Question 3

During the risk treatment process, what must be done to determine residual risk?

Answer 3

Take action to alter the risk’s likelihood or impact

To read more, see page 1.14

Question 4

What are the four features of system safety?

Answer 4

Components, purpose, environment, and life cycle

To read more, see page 1.22

Question 5

What is the most effective way of assessing risk?

Answer 5

Both quantitative and qualitative analysis

To read more, see page 1.22

Question 6

What steps occur in the risk assessment process?

Answer 6

Identify risks and analyze risks

To read more, see page 1.22

Question 7

Which accident analysis technique breaks down activities and operations and identifies hazards associated with each?

Answer 7

Job Safety Analysis

To read more, see page 1.22

Question 8

Which loss control technique is the most difficult to apply for many exposures?

Answer 8

Avoidance

To read more, see page 1.22

Question 9

When considering risk treatment options, which type of risk would most likely be exploited?

Answer 9

Speculative risk

To read more, see page 1.22

Question 10

Which of the following is NOT an objective of risk management?

Answer 10

Delegate risk management to different departments

To read more, see page 1.22

Question 11

Which two loss control techniques are often combined?

Answer 11

Loss prevention and loss reduction

To read more, see page 1.22

Question 12

How is risk appetite defined?

Answer 12

Total exposed amount that an organization wishes to undertake on the basis of risk-return trade-offs for one or more desired and expected outcomes

To read more, see page 1.22

Question 13

How is a risk priority number (RPN) calculated?

Answer 13

The rankings for consequences, occurrences, and detection are multiplied

To read more, see page 1.22

Question 14

In criticality analysis, what is a Category 2 failure?

Answer 14

Failure resulting in a delay or loss of operational availability

To read more, see page 1.22

Question 15

What component of a risk priority number rates the likelihood that the failure will not be detected before it reaches the customer?

Answer 15

Detection rankings

To read more, see page 1.22

Question 16

What is a root cause analysis?

Answer 16

A systematic procedure that uses the results of the other analysis techniques to identify the predominant cause of the accident

To read more, see page 1.22

Question 17

Which root cause analysis includes categories such as the 6Ms, 8Ps and 5 Ss?

Answer 17

Fishbone diagram

To read more, see page 1.22

Question 18

In which stage of strategic redeployment planning (SRP) would an organization consider the availability of transportation and routes to distribute its products and services?

Answer 18

Contingency production

To read more, see page 1.22

Question 19

What are the four stages of strategic redeployment planning (SRP)?

Answer 19

Emergency, alternate marketing, contingency production, and communication

To read more, see page 1.22

Question 20

What is the purpose of business continuity management (BCM)?

Answer 20

To examine threats and establish an operational plan to allow an organization to continue if a disruption occurs

To read more, see page 1.22

Question 21

What three internal systems are used to suppress fires?

Answer 21

Automatic, fire extinguishers, and standpipe