10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free CRM questions are organized by exam domain, so you can see how each part of the Certified Risk Manager blueprint is tested. Reveal the answer and explanation under each question.
A risk manager notes that a company is willing to accept a certain amount of loss but does not have the financial capacity to survive a major catastrophe. Which concepts are being compared?
Correct answer: A - Risk appetite and risk-taking ability
A contract contains an offer, acceptance, consideration, and a lawful purpose, but one signer lacks legal capacity. Which requirement for an enforceable contract is missing?
Correct answer: B - Competent parties
An employee ignores a safety procedure because they believe an accident will not affect them personally. This is best classified as which hazard?
Correct answer: C - Morale hazard
A loss dataset contains several extremely large claims. Which measure best represents the typical claim amount because it is least affected by extreme values?
Correct answer: B - Median
A proposed safety project has a positive net present value after comparing discounted benefits and costs. What is the best interpretation?
Correct answer: A - The investment generally creates financial value
A company uses a larger sample size when estimating expected losses. What is the likely effect on the confidence interval?
Correct answer: A - It generally becomes narrower
A sprinkler system does not prevent fires from occurring but reduces the damage when fires occur. Which risk control technique is this?
Correct answer: B - Loss reduction
A company requires a contractor to accept specified liabilities through a contractual agreement. Which risk control approach is being used?
Correct answer: A - Contractual risk transfer
After a crisis response is completed, an organization restores operations and evaluates improvements to reduce future impact. Which phase is occurring?
Correct answer: A - Recovery
A parent organization creates an insurance company to insure selected risks of the parent and related entities. What arrangement is this?
Correct answer: A - Captive insurance company
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