RMI Topic 4

Topic 4-18] Which of the following is(are) example(s)s of separation?

A) Separating duties between employees to prevent fraud

B) Keeping cash in a safe separate from other valuables

C) Duplicating critical data to ensure it is not lost

D) Storing hazardous materials in a separate room or area

E) None of the above.

B) Keeping cash in a safe separate from other valuables

D) Storing hazardous materials in a separate room or area

[Topic 4-15] Which of the following is(are) example(s) of proactive avoidance? A) Purchasing insurance to cover fire damage

B) Conducting regular safety inspections of equipment and machinery

C) Evacuating a building during a fire

D) Installing fire alarms in a building

E) None of the above.

E) None of the above.

[Topic 4-11] After Hurricane Katrina, Wal-Mart experienced very little interruption in their operations because [among other reasons] they had multiple distribution centers for products that were all in use. Which of the following statements is [are] TRUE concerning this?

A) This is an example of reducing severity of loss.

B) This is an example of separation of exposure units.

C) This is an example of reducing frequency of loss.

D) This is an example of duplication of exposure units.

E) None of the above.

A) This is an example of reducing severity of loss.

B) This is an example of separation of exposure units.

4. [Topic 4-69] (Exactly One Correct Answer) Which of the following is NOT an example of a proactive avoidance measure?

A) Not entering a market known for high liability risk

B) Refusing to use asbestos in construction materials from the outset

C) Deciding never to offer a product that contains harmful chemicals

D) Halting production immediately after a product defect is discovered

D) Halting production immediately after a product defect is discovered

Topic 4-46] Which of the following are not examples of pre-loss loss reduction? Select all that apply.

A) Regularly testing fire extinguishers to ensure they are functional

B) Installing security cameras to identify theives and recover stolen goods.

C) Providing compensation to customers affected by a product recall

D) Having a backup generator in case of a power outage

E) None of the above.

C) Providing compensation to customers affected by a product recall

[Topic 4-45] Which of the following is(are) not example(s) of loss prevention?

A) Providing training to employees so that they know how to respond to a fire.

B) Performing regular maintenance on equipment to reduce the likelihood of breakdowns

C) Storing important documents in a fireproof safe

D) Implementing cybersecurity measures to reduce the likelihood of data breaches

E) None of the above.

A) Providing training to employees so that they know how to respond to a fire.

C) Storing important documents in a fireproof safe

[Topic 4-48] Which of the following is (are) not example(s) of post-loss loss reduction?

A) Implementing security measures to prevent future losses

B) Offering compensation to customers affected by a product recall

C) Repairing property damage caused by a fire

D) Providing medical treatment to employees injured on the job

E) None of the above.

A) Implementing security measures to prevent future losses

C) Repairing property damage caused by a fire

Topic 4-20] Which of the following is(are) example(s) of reactive avoidance?

A) Hiring additional security guards after a break-in has occurred

B) Offering compensation to customers after a data breach has occurred

C) Implementing a fire suppression system after a fire has occurred

D) Conducting a safety audit after a workplace accident has occurred

E) None of the above.

E) None of the above.

[Topic 4-63] (Exactly One Correct Answer) What is the difference between loss prevention and loss reduction?

A) Loss prevention focuses on reducing the frequency of losses, while loss reduction focuses on minimizing the severity of losses

B) There is no significant difference; both terms are interchangeable

C) Loss prevention aims to eliminate risk, while loss reduction aims to minimize the impact of losses

D) Loss prevention is applicable before a loss occurs, whereas loss reduction is applicable after a loss occurs

A) Loss prevention focuses on reducing the frequency of losses, while loss reduction focuses on minimizing the severity of losses

[Topic 4-17] Which of the following are examples of pre-loss loss reduction? Select all that apply.

A) Regularly testing fire extinguishers to ensure they are functional

B) Providing compensation to customers affected by a product recall

C) Installing security cameras to identify theives and recover stolen goods.

D) Having a backup generator in case of a power outage

E) None of the above.

A) Regularly testing fire extinguishers to ensure they are functional

C) Installing security cameras to identify theives and recover stolen goods.

D) Having a backup generator in case of a power outage

[Topic 4-24] Which of the following is(are) example(s) of post-loss loss reduction?

A) Implementing new security measures after a data breach has occurred

B) Providing compensation to customers affected by a product recall

C) Conducting an investigation into the cause of a workplace accident to see if fraud occurred

D) Repairing equipment damage after a natural disaster has occurred

E) None of the above.

B) Providing compensation to customers affected by a product recall

C) Conducting an investigation into the cause of a workplace accident to see if fraud occurred

[Topic 4-25] A company has installed a backup generator to ensure power is not lost during an outage. What kind of risk control method is being used?

A) Pre-loss loss reduction

B) Post-loss loss reduction

C) Duplication

D) Separation

E) None of the above.

A) Pre-loss loss reduction

C) Duplication

[Topic 4-19] Which of the following is(are) example(s) of post-loss loss reduction?

A) Repairing property damage caused by a fire

B) Providing medical treatment to employees injured on the job

C) Offering compensation to customers affected by a product recall

D) Implementing security measures to prevent future losses

E) None of the above.

B) Providing medical treatment to employees injured on the job

C) Offering compensation to customers affected by a product recall

[Topic 4-61] (Exactly One Correct Answer) What does the term “avoidance” refer to in the context of risk management?

A) Transferring risk to another party

B) Choosing not to engage in an activity to eliminate the risk entirely

C) Splitting valuable resources across locations

D) Taking actions to reduce the chance of a loss occurring

B) Choosing not to engage in an activity to eliminate the risk entirely

[Topic 4-52] Which of the following is (are) not example(s) of separation?

A) Keeping computer servers in a separate, secure location

B) Separating duties among different employees to prevent them collaborating on financial fraud.

C) Segregating hazardous materials to prevent cross-contamination

D) Having multiple suppliers in case one fails.

E) None of the above.

B) Separating duties among different employees to prevent them collaborating on financial fraud.

[Topic 4-13] Dell computer has the famous Just in time (JIT) supply chain management. To ensure JIT works, Dell currently uses more than 30 suppliers in the Austin area for a key part, their motherboards. By having so many suppliers, Dell is applying which of the following loss control techniques

A) Separation

B) Duplication

C) Post-loss control

D) Frequency reduction

E) None of the above.

A) Separation

[Topic 4-49] Which of the following is (are) not example(s) of reactive avoidance?

A) Implementing a fire suppression system after a fire has occurred

B) Conducting a safety audit after a workplace accident has occurred

C) Hiring additional security guards after a break-in has occurred

D) Offering compensation to customers after a data breach has occurred

E) None of the above.

A) Implementing a fire suppression system after a fire has occurred

B) Conducting a safety audit after a workplace accident has occurred

C) Hiring additional security guards after a break-in has occurred

D) Offering compensation to customers after a data breach has occurred

[Topic 4-43] An organization which currently operates in Russia decides to halt its operations after it becomes clear that Putin may invade Ukraine, which will lead to sanctions. This is an example of:

A) Loss reduction

B) Proactive avoidance

C) Loss financing

D) Loss prevention

E) None of the above

E) None of the above

Topic 4-31] A company invests in an insurance policy to protect against potential losses. What kind of risk control method is being used?

A) Loss prevention

B) Proactive avoidance.

C) Separation

D) Post-loss loss reduction

E) None of the above.

E) None of the above.

[Topic 4-36] What type of risk management technique involves having backups or redundancies in place?

A) Duplication

B) Separation

C) Avoidance

D) Loss prevention

E) None of the above.

A) Duplication

Assume you are the risk manager for Munchies and Whatnots, LLC, a company that produces snack bars in Colorado. You are devising the recipe for a new snack bar and you are concerned about potential liability loss exposure you may face if you include peanuts (which many people are severely allergic to) in the recipe.

Topic 4-5] Suppose you decide to just play it safe and never include peanuts in the recipe (or any of your other recipes produced in the same facility) to begin with. This is an example of:

A) Loss Reduction.

B) Reactive avoidance.

C) Separation of exposure units.

D) Proactive avoidance.

E) None of the above.

D) Proactive avoidance.

Assume you are the risk manager for Munchies and Whatnots, LLC, a company that produces snack bars in Colorado. You are devising the recipe for a new snack bar and you are concerned about potential liability loss exposure you may face if you include peanuts (which many people are severely allergic to) in the recipe.

[Topic 4-6] Suppose you instead decide to include the peanuts, hope for the best, and lawyer up to reduce the damages in case you get sued. This is an example of:

A) Separation of exposure units.

B) Loss Reduction.

C) Proactive avoidance.

D) Loss Prevention.

E) None of the above.

B) Loss Reduction.

Assume you are the risk manager for Munchies and Whatnots, LLC, a company that produces snack bars in Colorado. You are devising the recipe for a new snack bar and you are concerned about potential liability loss exposure you may face if you include peanuts (which many people are severely allergic to) in the recipe.

[Topic 4-7] Suppose you include the peanuts, but also include a warning label on the package that notifies the consumer the bar “may contain peanuts.” This leads to fewer (but not zero) people with peanut allergies consuming your snack bar as well as limiting (again, not to zero) the amount of legal liability you are subject to for those who due get sick and sue you. This is an example of:

A) Proactive avoidance.

B) Loss Reduction.

C) Loss Prevention.

D) Separation of exposure units.

E) None of the above.

B) Loss Reduction.

C) Loss Prevention.

Assume you are the risk manager for Munchies and Whatnots, LLC, a company that produces snack bars in Colorado. You are devising the recipe for a new snack bar and you are concerned about potential liability loss exposure you may face if you include peanuts (which many people are severely allergic to) in the recipe.

[Topic 4-8] Suppose you include the peanuts, but also create a subsidiaries to handle sales in each state. This has the effect of capping any single potential liability claim because that subsidiary can declare bankruptcy.

A) Separation of exposure units.

B) Loss Reduction.

C) Proactive avoidance.

D) Loss Prevention.

E) None of the above.

A) Separation of exposure units.

B) Loss Reduction.

[Topic 4-40] All of the following are examples of loss prevention measures except:

A) Training employees on emergency evacuation procedures

B) Purchasing insurance to cover potential liability claims

C) Installing fire detectors and sprinklers in a warehouse

D) Implementing a strict maintenance schedule for machinery

E) None of the above.

B) Purchasing insurance to cover potential liability claims

C) Installing fire detectors and sprinklers in a warehouse

[Topic 4-33] What is the primary goal of risk control in the context of risk management?

A) To minimize the frequency and severity of losses while accounting for the cost of the risk control measures.

B) To ensure maximum profitability

C) To transfer all risks to another party

D) To completely eliminate all risks
E) None of the above.

A) To minimize the frequency and severity of losses while accounting for the cost of the risk control measures.

Topic 4-66] Which of the following is(are) example(s) of diversification in risk management?

A) Using multiple suppliers for critical components

B) Splitting inventory across multiple warehouses

C) Maintaining a backup server for data

D) Shutting down a product line after a severe lawsuit

E) None of the above.

A) Using multiple suppliers for critical components

B) Splitting inventory across multiple warehouses

Topic 4-28] A company has installed an alarm system that will automatically phone the police if it detects theft. No one outside of management knows about it. What kind of risk control method is being used?

A) Loss prevention

B) Post-loss loss reduction

C) Separation

D) Pre-loss loss reduction

E) None of the above

D) Pre-loss loss reduction

[Topic 4-4] (Exactly One Correct Answer) After being sued for causing severe health risks, the makers of an athletic enhancement formulation stop making the product and also successfully removes 100% of existing vaccines from the market. What risk management strategy is illustrated here?

A) Proactive avoidance.

B) Loss reduction.

C) Reactive avoidance.

D) Loss prevention.

C) Reactive avoidance.

[Topic 4-10] (Exactly One Correct Answer) The following is an excerpt from: ‘Most Small Businesses Lack Disaster Recovery Plan, Survey Finds,’ Columbus Dispatch, 3.1.17. Local information technology company R. Dorsey & Co. Inc. was hit by fire in 2009 at the building where it operated in Grandview Heights. Owner Bob Dorsey said the company was prepared by having data stored offsite, so it was able to resume operations quickly. But, still, insurance didn’t cover all the losses, he said. What risk control option is illustrated here and what loss exposure is the risk control method addressing?

A) Loss prevention, net income loss exposure.

B) Separation of exposure units, property loss exposure.

C) Separation of exposure units, net income loss exposure.

D) Avoidance, property loss exposure.

C) Separation of exposure units, net income loss exposure.

[Topic 4-64] Which of the following statement(s) is(are) TRUE about duplication as a risk control technique?

A) It reduces the frequency of losses to zero.

B) It typically aims to reduce severity of losses.

C) It is identical to separation.

D) It involves maintaining complete backups or spares.

E) None of the above.

B) It typically aims to reduce severity of losses.

D) It involves maintaining complete backups or spares.

[Topic 4-37] What does loss reduction aim to achieve?

A) Reduce the frequency of an event

B) Reduce the severity of the event

C) Transfer the responsibility of risk to another party

D) Set the frequency of the event to zero

E) None of the above.

B) Reduce the severity of the event

Topic 4-32] (Exactly One Correct Answer) A small business owner purchases supplies in small quantities from multiple vendors to reduce the risk of supply chain disruptions. What is the risk control method being used? What is the cost associated with this method?

A) Separation; Cost of additional supplies

B) Separation; Loss of economies of scale

C) Duplication; Loss of economies of scale

D) Duplication; Cost of additional supplies

B) Separation; Loss of economies of scale

[Topic 4-38] Which of the following examples best illustrates the use of separation as a risk control technique?

A) Hiring additional security personnel for an event.

B) Installing smoke alarms and fire extinguishers in a building.

C) Diversifying investment across multiple asset classes

D) Creating a detailed evacuation plan in case of an emergency

E) None of the above.

C) Diversifying investment across multiple asset classes

[Topic 4-60] A construction company is working on a high-rise building project in an area known for its harsh winter storms. The company decides to invest in advanced weather forecasting tools and flexible scheduling for workers to adapt to weather conditions. Which risk control strategy (or strategies) is(are) the construction company utilizing?

A) Reactive avoidance, by halting construction when a storm is predicted.

B) Post-loss reduction, by taking actions to minimize damage after a storm occurs.

C) Pre-loss reduction, by preparing in advance to minimize the impact of bad weather.

D) Proactive avoidance, by never starting construction on days with bad weather forecasts.

E) None of the above.

C) Pre-loss reduction, by preparing in advance to minimize the impact of bad weather.

[Topic 4-9] (Exactly One Correct Answer) What type of measurement is used when selecting from potential RM techniques?

A) Subjective risk measure of the key decision maker.

B) Neither.

C) Objective cost-benefit analysis.

D) Both.

D) Both.

[Topic 4-41] (Exactly One Correct Answer) A company decides to spread its inventory across five warehouses instead of concentrating it in one. This is an example of:

A) Avoidance

B) Diversification.

C) Separation

D) Duplication

C) Separation

Topic 4-22] Which of the following is(are) example(s) of pre-loss loss reduction?

A) Purchasing insurance coverage to protect against financial losses

B) Providing safety training for employees

C) Developing a plan for natural disaster response

D) Creating a backup plan in case of power outages

E) None of the above.

B) Providing safety training for employees

C) Developing a plan for natural disaster response

D) Creating a backup plan in case of power outages

Topic 4-12] (Exactly One Correct Answer) Insurance reduces the frequency or severity of a loss?

A) Both.

B) Severity

C) Neither.

D) Frequency

C) Neither.

[Topic 4-23] Which of the following is(are) example(s) of separation?

A) Segregating hazardous materials to prevent cross-contamination

B) Having multiple suppliers in case one fails.

C) Keeping computer servers in a separate, secure location

D) Separating duties among different employees to prevent fraud

E) None of the above.

A) Segregating hazardous materials to prevent cross-contamination

B) Having multiple suppliers in case one fails.

C) Keeping computer servers in a separate, secure location

[Topic 4-1] Which of the following statement(s) is(are) TRUE about the loss control technique, Separation?

A) In separation, loss exposures are spread over numerous projects, products, markets or regions.

B) In separation, the exposure units are utilized in the company’s day-to-day operations.

C) Separation can result in increased loss frequency.

D) None of the above.

A) In separation, loss exposures are spread over numerous projects, products, markets or regions.

B) In separation, the exposure units are utilized in the company’s day-to-day operations.

C) Separation can result in increased loss frequency.

[Topic 4-21] Which of the following is(are) example(s) of loss prevention?

A) Performing background checks on new employees

B) Implementing a disaster recovery plan for IT systems

C) Installing visible security cameras in high-risk areas

D) Providing employee training on cyber security best practices

E) None of the above.

A) Performing background checks on new employees

C) Installing visible security cameras in high-risk areas

D) Providing employee training on cyber security best practices

[Topic 4-70] (Exactly One Correct Answer) A retail store decides to keep extra inventory in an offsite warehouse, in case the main store is damaged by a natural disaster. This is an example of:

A) Separation B) Pre-loss loss reduction C) Reactive avoidance D) Duplication

D) Duplication

[Topic 4-34] Which of the following is considered a proactive avoidance measure in risk management for flooding?

A) Purchasing a flood insurance policy

B) Failing to enter the market due to flood risk

C) Ceasing operations after a flood occurs

D) Relocating a business to a less flood-prone area before flooding occurs

E) None of the above.

B) Failing to enter the market due to flood risk

[Topic 4-35] Which of the following is considered a reactive avoidance measure in risk management for flooding?

A) Ceasing operations after a flood occurs

B) Failing to enter the market due to flood risk

C) Purchasing a flood insurance policy

D) Relocating a business to a less flood-prone area before flooding occurs

E) None of the above.

A) Ceasing operations after a flood occurs

[Topic 4-50] Which of the following is (are) not example(s) of loss prevention?

A) Performing background checks on new employees

B) Providing employee training on cyber security best practices

C) Installing visible security cameras in high-risk areas

D) Implementing a disaster recovery plan for IT systems

E) None of the above.

D) Implementing a disaster recovery plan for IT systems

[Topic 4-47] Which of the following is(are) not example(s) of separation?

A) Keeping cash in a safe separate from other valuables

B) Duplicating critical data to ensure it is not lost

C) Storing hazardous materials in a separate room or area

D) Separating duties between employees to prevent fraud

E) None of the above

B) Duplicating critical data to ensure it is not lost

D) Separating duties between employees to prevent fraud

[Topic 4-2] (Exactly One Correct Answer) Lederle Pharmaceutical discovers that the cholesterol-lowering drug they are developing has severe side effects. They make the decision to stop producing the drug. What risk control strategy is illustrated here?

A) Retention.

B) Proactive avoidance.

C) Reactive avoidance.

D) Loss prevention.

B) Proactive avoidance.

. [Topic 4-39] How does insurance play into risk control?

A) Decreases severity of event

B) Allows firms to be able to finance risk mitigation

C) Decreases frequency of the event

D) Allows firms to pool risk and set risk to zero

E) None of the above.

E) None of the above.

. [Topic 4-51] Which of the following is (are) not example(s) of pre-loss loss reduction?

A) Creating a backup plan in case of power outages

B) Developing a plan for natural disaster response

C) Purchasing insurance coverage to protect against financial losses

D) Providing safety training for employees

E) None of the above.

C) Purchasing insurance coverage to protect against financial losses

[Topic 4-26] (Exactly One Correct Answer) A company has implemented a policy of separating duties among employees to prevent fraud. What kind of risk control method is being used?

A) Post-loss loss reduction

B) Separation

C) Proactive avoidance

D) Loss prevention

D) Loss prevention

[Topic 4-14] (Exactly One Correct Answer) Can insurance increase the frequency or severity of a loss?

A) Both. B) Neither. C) Severity D) Frequency

A) Both.

[Topic 4-44] Which of the following is(are) not example(s) of proactive avoidance?

A) Evacuating a building during a fire

B) Purchasing insurance to cover fire damage

C) Installing fire alarms in a building

D) Conducting regular safety inspections of equipment and machinery

E) None of the above.

A) Evacuating a building during a fire

B) Purchasing insurance to cover fire damage

C) Installing fire alarms in a building

D) Conducting regular safety inspections of equipment and machinery

[Topic 4-73] (Exactly One Correct Answer) Which of the following best illustrates post-loss reduction?

A) Choosing not to produce a product to avoid potential lawsuits

B) Shutting down a production line after a major recall to minimize further damage

C) Dividing key operational tasks among different employees

D) Installing an alarm system to deter burglaries

B) Shutting down a production line after a major recall to minimize further damage

[Topic 4-65] (Exactly One Correct Answer) A technology firm invests in an advanced security system to detect unauthorized entry but does not publicly advertise its presence. This is an example of which risk control method?

A) Loss prevention

B) Post-loss loss reduction

C) Reactive avoidance

D) Pre-loss loss reduction

A) Loss prevention

[Topic 4-62] In risk management, what role do “loss control specialists” play?

A) They assess the financial impact of losses on a company’s bottom line

B) They are responsible for transferring all company risks to insurance providers

C) They identify and implement strategies to minimize the frequency and severity of losses

D) They develop insurance policies for businesses

E) None of the above.

C) They identify and implement strategies to minimize the frequency and severity of losses

A newly established technology startup is deciding on its office location. The downtown area is located in a flood zone but has higher foot traffic. The suburbs have lower foot traffic but are outside of the flood zone. The startup is considering whether to locate downtown or in the suburbs.

57. [Topic 4-58] If the startup decides to locate in the suburbs, which risk control strategy are they using?

A) Duplication, because the startup is creating a backup by choosing a safer location.

B) Post-loss loss reduction, because moving to a suburban area decreases the severity of flood damage.

C) Avoidance, because choosing a lower-risk location reduces the potential for flood based disruptions.

D) Loss prevention, because the decision is intended to reduce the frequency of encountering floods.

E) None of the above.

D) Loss prevention, because the decision is intended to reduce the frequency of encountering floods.

A newly established technology startup is deciding on its office location. The downtown area is located in a flood zone but has higher foot traffic. The suburbs have lower foot traffic but are outside of the flood zone. The startup is considering whether to locate downtown or in the suburbs.

. [Topic 4-59] If the startup decides to locate downtown and purchase flood insurance, which risk control strategy are they using?

A) Avoidance, because they are setting their frequency to zero by moving the risk to the insurance company.

B) Duplication, because the startup is creating a backup by placing their trust in an insurance company.

C) Loss prevention, because the decision is intended to reduce the frequency of encountering floods.

D) Post-loss loss reduction, because having insurance will reduce the amount the firm has to pay in the event of a flood, which is a reduction in severity.

E) None of the above.

E) None of the above.

Topic 4-72] (Exactly One Correct Answer) A restaurant chooses to never serve raw oysters to eliminate the possibility of foodborne illness claims. This is an example of:

A) Separation

B) Pre-loss loss reduction

C) Loss prevention

D) Proactive avoidance

D) Proactive avoidance

Topic 4-3] Barbara’s computer crashed and she lost some important files. She has no hardcopy and no backup. What risk control technique should she have used in this situation?

A) Duplication of exposure units.

B) Cyber insurance.

C) Passive retention.

D) Diversification.

E) None of the above.

A) Duplication of exposure units.

[Topic 4-71] Which of the following statements is(are) TRUE about the difference between separation and duplication?

A) Only duplication reduces frequency.

B) Separation is always more expensive than duplication.

C) Both techniques aim primarily to reduce severity.

D) Separation involves using multiple units in normal operations, while duplication creates a backup not regularly in use.

E) None of the above

C) Both techniques aim primarily to reduce severity.

D) Separation involves using multiple units in normal operations, while duplication creates a backup not regularly in use.

[Topic 4-30] A company has two servers in different locations in case of a system failure. What kind of risk control method is being used?

A) Duplication

B) Pre-loss loss reduction

C) Post-loss loss reduction

D) Separation

E) None of the above.

B) Pre-loss loss reduction

D) Separation

[Topic 4-42] A manufacturing company conducts regular safety drills and has an on-site medical team ready for emergencies. These actions are examples of:

A) Loss financing

B) Proactive avoidance

C) Loss reduction

D) Loss prevention

E) None of the above.

C) Loss reduction

D) Loss prevention

[Topic 4-29] A company has offered compensation to customers affected by a product recall. What kind of risk control method is being used?

A) Post-loss loss reduction

B) Reactive avoidance

C) Pre-loss loss reduction

D) Separation

E) None of the above.

A) Post-loss loss reduction

[Topic 4-27] A company has conducted safety training sessions for employees to both prevent workplace accidents and to limit the cost of an accident if one occurs. What kind of risk control method is being used?

A) Post-loss loss reduction

B) Loss prevention.

C) Proactive avoidance

D) Pre-loss loss reduction

E) None of the above.

B) Loss prevention.

D) Pre-loss loss reduction

Topic 4-67] (Exactly One Correct Answer) Which risk control technique is used when a company chooses to produce goods in multiple locations to minimize the impact of a single event?

A) Pre-loss loss reduction

B) Reactive avoidance

C) Duplication

D) Separation

D) Separation

67. [Topic 4-53] Which of the following is (are) not example(s) of post-loss loss reduction?

A) Providing compensation to customers affected by a product recall

B) Conducting an investigation into the cause of a workplace accident to see if fraud occurred

C) Implementing new security measures after a data breach has occurred

D) Repairing equipment damage after a natural disaster has occurred

E) None of the above.

C) Implementing new security measures after a data breach has occurred

D) Repairing equipment damage after a natural disaster has occurred

[Topic 4-68] (Exactly One Correct Answer) What is the main distinction between pre-loss and post-loss reduction?

A) Pre-loss reduction is always cheaper than post-loss reduction.

B) Pre-loss reduction focuses on eliminating frequency, while post-loss reduction focuses on eliminating severity.

C) There is no difference; they are synonymous.

D) Pre-loss reduction occurs before a loss event to reduce severity, while post-loss reduction occurs after a loss event to limit further damage.

D) Pre-loss reduction occurs before a loss event to reduce severity, while post-loss reduction occurs after a loss event to limit further damage.

[Topic 4-16] Which of the following is(are) example(s) of loss prevention?

A) Providing training to employees so that they know how to respond to a fire.

B) Storing important documents in a fireproof safe

C) Implementing cybersecurity measures to reduce the likelihood of data breaches

D) Performing regular maintenance on equipment to reduce the likelihood of breakdowns

E) None of the above.

C) Implementing cybersecurity measures to reduce the likelihood of data breaches

D) Performing regular maintenance on equipment to reduce the likelihood of breakdowns