TRIP Risk Management 1 — Questions and Answers
Question 1: What is the first step in a transportation risk management plan?
- Purchase insurance coverage
- Conduct risk identification (Correct answer)
- Negotiate shipping contracts
- Train drivers
Correct answer: Conduct risk identification
The first step is identifying risks associated with transportation operations, such as cargo damage or vehicle accidents.
Question 2: Which type of insurance typically covers cargo during transit?
- Auto liability insurance
- Property insurance
- Cargo insurance (Correct answer)
- Workers’ compensation
Correct answer: Cargo insurance
Cargo insurance protects goods from loss or damage while in transit by land, sea, or air.
Question 3: What is the purpose of risk mitigation strategies in transportation?
- Eliminate all insurance needs
- Ensure timely invoicing
- Minimize losses from potential risks (Correct answer)
- Increase delivery charges
Correct answer: Minimize losses from potential risks
Risk mitigation strategies aim to reduce the likelihood or impact of transportation-related incidents.
Question 4: Which federal agency regulates commercial motor vehicle safety in the U.S.?
- FAA
- FMCSA (Correct answer)
- EPA
- OSHA
Correct answer: FMCSA
The FMCSA is responsible for regulating and providing safety oversight of commercial motor vehicles.
Question 5: Which of the following is a key element in evaluating transportation risk?
- Scheduling monthly meetings
- Hiring more drivers
- Reviewing loss history (Correct answer)
- Increasing fuel budgets
Correct answer: Reviewing loss history
Evaluating risk includes analyzing historical loss data to identify trends and vulnerabilities.
Question 6: Why is driver training important in managing transportation risk?
- To reduce driver wages
- To comply with warehouse rules
- To minimize accidents and violations (Correct answer)
- To improve GPS usage
Correct answer: To minimize accidents and violations
Training drivers in safety procedures and defensive driving helps prevent accidents and improves compliance.
TRIP Risk Management 1
What is the first step in a transportation risk management plan?