Risk Assessment and Treatment Questions

As opposed to many other legal systems, a strong characteristic of the East Asian countries' approach to contract disputes is

A tradition of informal compromise.

A customer trips getting on an escalator at one of the malls owned and operated by this property development company. The customer suffers significant injuries and initiates a civil suit against the company. Describe the types of monetary damages the company may have to pay if found negligent in this case.

A wrongdoer in a civil case will have to pay compensatory damages to the injured customer. Compensatory damages include special damages for expenses such as medical costs or lost wages and general damages for losses such as pain and suffering.

Unless otherwise provided by statute or by the common bill of lading, a common carrier is generally responsible for

100% of the value of the property transported

Under the Federal Motor Carrier Safety Regulations, hours of service rules must be satisfied. For a driver carrying property who works for a carrier that operates six days a week, what is the maximum number of hours the driver may drive after a 10-hour off-duty break?

11 hours

Thorpe Company uses failure mode and effects analysis (FMEA) in their analysis of system components. The company rates severity of the consequence on a 1 to 10 scale, with 10 being the most severe. The likelihood of occurrence is rated 1 to 10, with 10 being the highest probability of occurrence. The likelihood that the failure will not be detected before a critical point is also rated 1 to 10, with 10 being the highest probability that the failure will go undetected. If the severity of failure is 8, the likelihood of occurrence is 7, and the likelihood of detection is 4, what is the criticality score?

7 x 8 =56

Consider public international law and private international law. Which one of the following best explains how these legal systems differ in the way they affect nation states?

Public international law involves international agreements that require nation states to amend their national laws, but private international law merely involves analysis and application of existing national laws.

Which one of the following statements is true regarding international law?

Public international law is governed by treaties and other international agreements.

Jason Davies is the new risk manager of Precious Metals Mining Company. Jason decided to take a "fresh" look at all the risks Precious Metals faces. He considered the causes and sources of the risks, as well as the positive and negative consequences, and the likelihood of the occurrence of the consequences. Jason conducted a

Risk Analysis

The amount of uncertainty an organization is prepared to accept in total or more narrowly with a certain business unit, a particular risk category, or for a specific initiative is the organization's

Risk Tolerance

Which one of the following risk identification techniques can be applied if the problem is of low complexity and there is no need for quantitative output?

Risk analysis questionnaires

The Employee Retirement Income Security Act (ERISA) applies:

To any kind of agreement or arrangement made in advance to provide employee benefits, except those provided for employees of federal, state, and municipal governments.

Elliott Industries has just invested a large sum in new, highly-sophisticated computer equipment and building renovations. The building renovations created an airtight, oxygen-free, vacuum-sealed room to house the expensive equipment. For fire losses initiating in that room, the airtight, oxygen-free, vacuum-sealed room is an example of

loss prevention

Emerald Industries has just invested a large sum in new, highly-sophisticated computer equipment and building renovations. Emerald installed state-of-the-art smoke detection devices throughout the facility. Emerald 's state-of-the-art smoke detection devices are an example of

loss reduction

Which one of the following risk identification techniques can be applied if the problem is of low complexity and there is no need for quantitative output?

risk analysis questionnaires

Describe the requirements for a contract to be enforceable.

* Agreement—One party makes an offer that the other party accepts. * Consideration—Each party gives up something of value. * Capacity to contract—The parties must have the legal ability to enter into contracts. * Legal purpose—The contract must have a legal purpose.

Risk identification and analysis techniques may include

- Questionnaires and checklists - Workshops - Cause-and-effect analysis - Failure analysis - Future states analysis - Strategy analysis - Emerging technologies and smart products

Which one of the following is a liability loss exposure arising out of a tort?

A building contractor fails to follow the project engineer's design specifications, and the building collapses.

A2Z Contracting entered into a contract with a large corporation headquartered in a different state. A2Z's counsel recommended that they negotiate to have a clause included into a contract that specifies their state's law will govern the contract's interpretation. This is an example of

A loss reduction measure for contractual liability.

Which one of the following is an example of a completed operations liability?

After a repair shop overhauled a production machine and returned it to the manufacturer, the machine malfunctioned and injured an employee.

Mathias Manufacturing (Mathias) suffered a major business disruption due to a fire at one of its locations. Management has set up a center of operations with the business intelligence information available to test various production scenarios. Mathias is in which one of the following stages of strategic redeployment planning?

Alternative marketing stage

An organization that maintains a production site and an active backup site that functions as the primary site as needed is using which one of the following continuity plan strategies?

Alternative site mode

Some state no-fault laws preserve the tort system but require insurers to offer personal injury protection (PIP) insurance that provides specified first-party benefits. This is referred to as

An add-on no-fault law.

Wilderness Experience is a company that organizes and manages team-building exercises for corporate management teams. Some activities management teams engage in include rock climbing, white water rafting, climbing rope ladders, riding zip-lines suspended in the air, and bungee jumping. Although Wilderness Experience employs extensive physical loss control measures, it also requires participants to sign a contract absolving Wilderness Experience from liability arising from any injuries sustained while participating in Wilderness Experience activities. The contract the company uses absolving them of liability is Select one:

An exculpatory agreement.

Those resolving international disputes between individuals or corporations first apply any international agreement or treaty that governs the dispute. If no international agreement or treaty applies, then

Any relevant laws of the involved countries are applied to the dispute.

In the typical civil law case the preliminary stage involves submission of pleadings and

Appointment of a hearing judge.

Available risk treatment techniques include these:

Avoid the risk Modify the likelihood and/or impact of the risk Transfer the risk Retain the risk Exploit the risk

The assembly line at ARM Manufacturing has a step in a workflow where work from several assembly lines or processes flow through or depend on one key step. The term for this situation is a

Bottleneck

To ensure safe and proper loading of cargo, fleet management and drivers should

Be familiar with the cargo securement requirements in the FMCSR.

In any legal dispute arising between parties from different countries, where no international treaty applies, the most important issues are

Comity and jurisdiction.

A body of principles and rules derived from court decisions over time is called

Common law

Which one of the following stages of a strategic redeployment plan has the sole objective of preserving and enhancing stakeholders' trust and confidence in the organization?

Communication stage

Lawn Chemical Company applies fertilizer and weed killer to lawns and shrubs. Which one of the following is a liability loss exposure to which Lawn Chemical Company likely has a significant exposure?

Completed operations liability

In 2010, the Federal Motor Carrier Safety Administration (FMCSA) developed a program to improve safety of commercial motor vehicles (CVMs) and reduce accidents, injuries, and fatalities. Through this program, safety performance data are tracked and updated; and carrier interventions ranging from warning letters to comprehensive investigations can be ordered. The program FMCSA developed is the

Compliance, Safety, and Accountability Program.

Once an organization determines that a statutory liability loss exposure exists, the organization should

Comply with that statute.

The development and implementation of a business continuity plan entails seven steps. Which one of the following steps involves assessing what events may occur, when they will occur, and how they could affect achievement of key objectives?

Conducting a business impact analysis

A defendant's violation of a statute can

Constitute a breach of duty of care.

During which stage of a strategic redeployment plan does the organization need to consider the supply chain, as well as the facilities and machinery that are available?

Contingency production stage

Which one of the following types of intellectual property protection automatically applies to any work of expression when it becomes fixed in a tangible medium?

Copyright

If an organization captures data using an onboard computer that indicates that a particular driver is a habitual speeder and does nothing to change this behavior, this data could

Create additional liability for the organization if the driver were to be involved in an accident.

The Loss Control Bureau is a nonprofit organization that was formed to promote loss control at U.S. manufacturing facilities. Member companies pay a nominal fee each year, and the Bureau provides the members with access to advances in loss control. Membership in the Bureau has declined by 40% over the last 20 years, and the leaders of the Bureau would like to know the reason. They invited experts from 10 member companies and 5 companies that discontinued membership to respond to an anonymous questionnaire about the value of Bureau membership. The results were tabulated, and the results were sent to the respondents with a second round of questions. The process was repeated until a consensus view was reached. The Bureau then launched a campaign to address this root cause, and membership immediately increased. The method the Bureau used to determined the root cause of declining membership is called the

Delphi technique

Understanding the business is the first step in the development of a business continuity plan. Understanding the business involves

Determining Key Objectives

As part of business continuity management (BCM), a risk assessment helps an organization accomplish all of the following, EXCEPT:

Determining its recovery time objective

One of the questions to determine if someone is a key employee would be what the organization would do if that person were suddenly not available. Which of the following would be a way to manage this risk?

Develop a succession plan.

Which one of the following types of plan typically focuses on actions that can be taken before and immediately after a disaster to ensure the safety of personnel and the viability of future operations?

Disaster recovery plan

A corporate board of directors owes which one of the following duties regarding material information about a corporation's loss exposures and changes to them?

Duty to disclose

In contrast to the concepts of emergency preparedness and response planning and crisis management planning, business continuity management seeks to

Ensure continuing business operations and recovery in the event of any serious disruption in operations.

Cotton Products Company manufactures cotton clothing, towels, sheets, and other cotton products. All production takes place at one large multi-acre production facility. The risk manager of Cotton Products Company called a meeting attended by her staff, the plant foreman, the plant safety engineer, and the head of operations. She told the group that she wanted to analyze one problem--the top event--a catastrophic fire at the production facility. The group discussed all the causes of failure and factors that could contribute to the top event. The causes of the "top event" were listed, and methods of reducing the likelihood and consequences of the event were examined. The technique the risk manager employed is called

Fault Tree Analysis

Which one of the following risk assessment techniques identifies a specific event and then analyzes factors that contribute to this event?

Fault tree analysis

Agri-Lab is a small agricultural products company. Last year, the company patented a new method for extracting ethanol from grain. The Agri-Lab method reduces the cost of this process by over 40%. GrainCom is an agricultural conglomerate that owns huge supplies of grain. GrainCom offered to purchase Agri-Lab (the company) for $40 million, based on the money it would make by applying Agri-Lab's process to the grain it owns and grain it may purchase in the future. The value of GrainCom's bid to purchase Agri-Lab is based on which rationale for assigning a value to intellectual property?

For merger and acquisition purposes

Describe some of the risk control areas that would be of particular concern to the risk management professional for the two hotel operations.

For the hotels, the risk management professional would consider housekeeping and maintenance in the parking lots, building exits and entrances, and all walking surfaces. Stairways, elevators, and escalators are another risk control area to be considered.

The cost of replacing damaged property with similar property that performs the same function but might not be identical to the damaged property is known as

Functional Replacement Cost

Bryce Evans is the risk manager of a rapidly growing reservations company. The company employs 600 agents who take calls and make reservations on their computers for airlines, hotels, rental car companies, and other services. The company's most valuable physical assets are its state-of-the-art computers. The company's operators work at four separate call centers in Metro City. The company would like to centralize its operations, and found an abandoned three-floor department store that could house all of the reservations agents. Which one of the following types of fire suppression systems should Bryce recommend for the new building?

Gas extinguishing system

One type of risk faced by an organization arises from property, liability, or personnel-related loss exposures. This type of risk is called

Hazard Risk

Which one of the following is a contractual provision by which one party agrees to assume the liability of a second party?

Hold harmless agreement

The purpose of fault tree analysis is to

Identify the various ways of interrupting the sequence of events leading to system failure so that the failure itself can be prevented.

A state has a particularly bad reputation for frivolous lawsuits and large damage awards. Non-profit organizations and charities in the state were having difficulty finding qualified individuals to serve on their boards for fear of legal liability. Janet Barnes, a state senator, sponsored a bill that would shield non-compensated board members of charities and non-profit organizations from tort liability claims. The legal defense that she wanted these board members to be able to assert is

Immunity.

The Sarbanes-Oxley Public Company Reform and Investor Protection Act of 2002

Imposes legal liability on an organization regardless of whether the organization committed any tort or assumed any liability under contract.

A worker for Build-Rite Construction Company removed the pressure gauge and warning sticker from an air compressor. The pressure gauge automatically shuts off the compressor when the pressure gets too high. The sticker warned that an explosion could result if the pressure was too high. Without the pressure gauge in place, the air compressor exploded. The explosion killed one worker and severely injured another. If Build-Rite performs a root cause analysis (RCA) of this fatal accident, which one of the following might be determined to be a root cause?

Inadequate training

Under the Federal Motor Carrier Safety Regulations (FMCSR), a commercial motor vehicle (CMV) driver whose license or driving privileges have been suspended, revoked, or cancelled must

Inform his or her employer and the motor vehicle department of his or her state or jurisdiction of domicile.

In many organizations, disaster recovery is considered a function of which one of the following departments?

Information technology

Which one of the following is an effective safety related technology for fleet operations to reduce roll-overs?

Lane departure warning system

Which one of the following most accurately describes how the modern Indian legal system is affected by the traditional caste system?

Legislation in India has voided all the rules of the caste system when they conflict with social justice.

Which one of the following is a measure that can be taken to reduce the loss associated with contractual liability?

Liquidated damages provision

If the risk management professional for a newly created business wanted to identify all of the personal property exposures, the least effective method of doing that would be the

Loss histories.

Which one of the following valuation standards is most appropriate for valuing products that are relatively indistinguishable from one another, such as agricultural products, oil, or precious metals?

Market Value

Atlee-Randolf is a brokerage that helps insurance companies purchase reinsurance. A complex problem for their clients is determining the proper amount of reinsurance to purchase. Atlee-Randolf is of great assistance in such situations. It enters data on the amount of property insurance and business interruption insurance an insurer has written by zip code into its computer. Next it enters data from the U.S. Geological Service on earthquake probabilities and potential severity by zip code. Then the computer is programmed to select from the distributions of properties and earthquake likelihood and severity, and estimate the losses. The computer is programmed to repeat this process one hundred thousand times and produce a distribution showing the outcome. The final distribution is quite useful to insurance executives when choosing how much reinsurance to purchase. This technique used by the insurance broker is called

Monte-Carlo Simulation

Which one of these sources of legal liability includes wrongful acts classified as torts?

Negligence is the source of legal liability that includes the wrongful acts classified as torts.

Marcus has filed an employment discrimination claim against his employer and has lodged a complaint with the Equal Employment Opportunity Commission (EEOC). If the EEOC dismisses Marcus's discrimination complaint, it will

Not bar his suit.

One type of risk that an organization faces arises from people, processes, systems or controls. This type of risk is called

Operational Risk

Which one of the following most accurately describes the value of precedent in the common law system?

Precedents are guides that judges use to aid analysis of the facts in particular cases, but they are not rigid frameworks for all decisions.

Fault tree analysis provides guidance in choosing among loss prevention alternatives. An "and" gate connecting events in rectangles C, D, and E to the event in rectangle A indicates which one of the following?

Preventing the event in rectangle C, D, or E from occurring will prevent the event in rectangle A from occurring.

A manufacturer has decided to redesign its production process so that it is no longer dependent on one piece of machinery. Which one of the following threats to the supply chain is the manufacturer trying to mitigate?

Production bottlenecks

Like domestic courts, courts deciding international cases must determine whether they have jurisdiction over the person or entity and over the subject matter and whether they have jurisdiction to

Render the particular judgment in the case.

SleepWell Motels is a regional chain of motels. In addition to the motel rooms, each facility has a furnished lobby, an exercise room, a coffee shop, and a meeting room. To increase revenues, the motels routinely rent the meeting room for graduation parties, birthday parties, wedding receptions, and similar functions. A lawsuit was filed against SleepWell last week for injuries sustained by a guest at a wedding reception held in a meeting room. In order to best control its exposure to liability claims SleepWell should

Require tenants to sign a hold-harmless agreement.

Which one of the following is a loss control technique that disperses a particular asset over several locations?

Separation

Cromley Manufacturing is a manufacturer of natural dog food. When the company was started 10 years ago, there were a limited number of suppliers of the natural ingredients that Cromley used in its products. Over the years, a number of new suppliers of the natural ingredients have approached Cromley but management has remained loyal to its original supplier. This management decision has left Cromley exposed to which one of the following supply chain vulnerabilities?

Single Source Supplier

Patricia's Pies is a small bakery that makes various types of fruit pies. The pies are only sold at local markets. Patricia's is loyal to the local community and has always depended on a local farmer to supply the fruit for the pies. Due to drought conditions this year, the local farmer's crops have been poor and he is unable to meet the supply needs of Patricia's Pies. Patricia's is now contacting other farmers trying to meet its fresh fruit demand, but the supplies are limited and the prices are high. Which one of the following external threats in the supply chain is Patricia's facing?

Single Source Supplier

Intellectual property is protected through which one of the following?

Statutes

Ellison Egg Company owns 10,000 chickens. The chickens are divided between three facilities. Ellison prepares a corn-based feed for the chickens using a grinding machine. The profitability of Ellison's operation is largely dependent on the price of corn for the chicken feed and the price at which eggs can be sold. This risk, which arises from the effect of market forces, is called

Strategic Risk

The chief executive officer and senior management team for a large, global food distribution conglomerate are part of a risk assessment initiative with the corporation. Describe the types of strategic risks this group would consider and identify which approach to risk assessment would be used at this management level.

Strategic risks arise from trends in the economy and in society and include consideration of the economic and political environments within the countries in which they do business. The team should also consider demographics and competition. When risk assessment is undertaken by senior managers, it follows a top-down approach. After risks are identified and analyzed, the organization would need to decide on appropriate risk treatment techniques. Its ultimate decision would be based on the organization's objectives and risk appetite.

As part of its risk assessment process, a company's risk management department performed a SWOT (strengths, weaknesses, opportunities, threats) analysis. SWOT analysis is a form of which one of the following types of risk identification techniques?

Strategy Analysis

Describe the types of activities that can result in strict liability torts.

Strict liability torts typically arise when an organization engages in certain activities that are considered ultrahazardous or that involve product liability cases. Examples of ultrahazardous activities are blasting, harboring wild or dangerous animals, or manufacturing or selling certain hazardous products.

Blithe Manufacturing suffered an explosion at one of its manufacturing locations. Fortunately, there were no injuries and Blithe has a business continuity plan in place. During this crisis which one of the following stakeholders should be notified of delivery and payment procedures as soon as possible?

Suppliers

Disaster recovery planning arose from organizations' increasing use of and dependence on

Technology

Cathy Stevens was just hired as risk manager of Metro Properties, Inc. Metro Properties owns and manages large office buildings in downtown Chicago, Boston, New York, and Atlanta. After performing an inspection of each of the buildings, Cathy recommended that each building's ventilation system be safeguarded to prevent general access. By safeguarding the ventilation system, Cathy is preventing losses due to

Terrorism

When using fault tree analysis (FTA), an "or" gate indicates which one of the following?

That any one of the events leading to the gate is sufficient to cause that event to occur.

Which one of the following statements is true regarding a foreign civil-law and common-law legal systems?

The German version of non-criminal law requires a finding of fault in a tort suit.

Which one of the following statements is true regarding Scandinavian law?

The Scandinavian countries have codified historical business practices as statutes.

If a business dispute arises between companies who are domiciled in two different countries with dissimilar laws, one issue that must be considered is whether

The chosen court has the right to hear the legal dispute.

A tenant can have a property interest in rented property when

The market value of rent for the property is more than the rent the tenant is paying.

An organization has just completed an extensive risk management review for its operations. As part of this effort, it has established a risk treatment plan. Explain why the organization should monitor this plan periodically going forward.

The organization should periodically monitor the risk treatment plan because the organization's operations, economic conditions, or legal and regulatory requirements may change. The current risk treatment plan may become invalid, and previously implemented controls may become ineffective.

Describe the premises and operations liability loss exposure for this property development company.

The premises and operations liability loss exposure relates to liability from bodily injury or property damage caused by an accident that occurs on the organization's owned, leased, or rented premises. The organization's liability is usually based on its failure to exercise the appropriate degree of care owed to others.

Explain how the property development company could use hold-harmless agreements to remove or limit liability from its tenants.

The property development company could use hold-harmless agreements in the leases with stores and other tenants in the malls. Such agreements would require these tenants to hold the property management company harmless from claims made by third parties who are injured by the tenants' negligence—for example, if a customer in a restaurant within the mall were to be injured as the result of falling on a spill that had not been cleaned up by restaurant staff. The property management company's liability would be limited related to the customer's injuries based on the hold-harmless agreement.

Which one of the following is true regarding the communication stage of strategic redeployment?

The sole objective is to preserve or enhance stakeholders' trust and confidence in the organization.

The central idea of the socialist-communist law system was the emphasis on

The state's interest over that of individuals.

Sebastian Snax is a manufacturer of organic snack foods. The products are distributed to grocery stores by a contract carrier. On March 31, Sebastian learns that the drivers for the contract carrier may go on strike at midnight. The contract carrier does not have a back-up plan, and Sebastian is now searching for an alternative way to deliver its products. How could management at Sebastian have better prepared for this potential disruption?

Through an improved relationship and communication with the contract carrier

The risk management professional for a manufacturer of power tools is reviewing the organization's products liability risk exposures. Describe the risk control measures the organization can use to modify the likelihood of tort liability related to injuries caused by its products.

These risk control measures should be considered to modify the likelihood of tort liability: - Proper design of power tools to avoid misuse or injury - Testing of all products during production and prior to distribution - Implement quality control procedures - Provide clear instructions or manuals for the proper use of the power tools

From the standpoint of commercial liability insurance for a business, which one of the following statements about premises and operations liability exposures is true?

They may vary under common law, because a business may owe different duties of care to others on the business premises.

An organization may be able to minimize litigation arising from a crisis event

Through a well-communicated crisis management plan.

Which one of the following statements is true regarding trademark creation?

To be valid, a trademark must be distinctive or memorable because of being unique or unusual.

Describe the measures the risk management professional should take to assist the organization in modifying the likelihood of statutory liability.

To modify the likelihood of statutory liability, the risk management professional must understand the statutory compliance requirements that apply to the shopping mall and hotel operations. Internal experts or external consultants can assist with this process. Legal libraries can also provide information on statutory requirements.

Supply chain management involves assessing the internal and external exposures and vulnerabilities to an organization's supply chain and

Uncovering potential opportunities.

Tri-State Insurance Agency just completed construction of a new building. The new building is two stories tall, with an area in the basement for the main computer and storage. The owners of Tri-State tried to consider all conceivable losses when the new building was constructed. It's a free-standing, brick building located in a suburban area. The building is located on the highest point of a treeless two-acre lot. Sod was installed on the grounds last week, and the sod is watered using hoses attached to faucets on the side of the building. When Carrie Smith, one of the owners, arrived for work on a Monday morning, she knew something was wrong as she heard water running. She opened the door to the basement, and saw boxes floating in the water. She ran outside and found a watering hose had been stuck through a basement window, and the faucet was opened wide. The loss, in this case, was attributable to

Vandalism

Easy Ride Mower Company produces riding lawnmowers at its 20-acre production facility in the suburbs of Metro City. Webb Rawlins is the head groundskeeper at the plant. Webb and his crew are responsible for the upkeep of the grounds, driveways, parking lots, and sidewalks. Easy Ride has a lot of "green space" at the production facility, and Webb routinely mows the grass with an Easy Ride Model 150 mower. One day while Webb was mowing a side hill at the plant grounds, the mower started sliding sideways. Webb hit the "kill switch" for the mower blade, but the blade kept running. The mower over turned, and Webb sustained severe lacerations to this arms and legs. Which one of the following statements is true regarding Webb's status for collecting for this work-related injury?

Webb can collect workers compensation benefits and sue the employer successfully as the manufacturer of a defective product.

The importance of systems relationships from a risk control and fleet safety management perspective is that

When a smaller system fails, the larger system of which the smaller system is a part is more likely to fail.

In any legal dispute arising between parties from different countries, which one of the following issues must be considered?

Whether a court in one country will recognize the decision of another country's court.

Private international law involves disputes between individuals or corporations in different countries and is also referred to as conflicts of law. All of the following represent issues to be addressed, EXCEPT:

Whether a treaty or international agreement applies.

A voluntary relinquishment of a known right defines

a waiver

With the fall of the Soviet bloc in the 1990s, former eastern European bloc countries abandoned the socialist-communist legal system in favor of a

civil law system

For a contract to be enforceable, four basic requirements must be met: Agreement, Legal Purpose, Capacity to Contract and ______

consideration

All of the following are components of a system, EXCEPT:

environment

Which one of the following is a clause that enables a party to avoid liability for negligence?

exculpatory agreement

One type of risk faced by an organization arises from property, liability, or personnel-related loss exposures. This type of risk is called Select one:

hazard risk

Clothing Store leases its space from Leasing Company. In the lease agreement between the companies, Leasing Company makes it clear that it wants Clothing Store to be responsible for anyone injured while in the leased space. This wording inclusion in the lease agreement is called a

hold harmless agreement

The right to invade another's interest to promote or protect one's own greater interests is

legal privilege

One risk analysis approach compares the current state to some future desired state. A technique is commonly used to examine how the current environment may be influenced by emerging developments. With this approach, a team considers changes or trends, and develops various outcomes based upon the changes or trends. Based on the projected outcomes, risks can be identified, analyzed, and evaluated. This technique is called

scenario analysis

Strict Liability does not require intent to cause harm

true