Certified Professional in Healthcare Risk
Management (CPHRM) Mock Examination –
Comprehensive Risk Management Practice
Questions
1. A hospital experiences a sentinel event involving a medication error. The risk manager
initiates a Root Cause Analysis (RCA). What is the primary objective of this process?
A. To identify system-level vulnerabilities and prevent future occurrences.
B. To satisfy state regulatory reporting requirements for adverse events.
C. To identify which individual staff member is most responsible for the error.
D. To document evidence for the hospital’s legal defense team in anticipation of litigation.
Correct Answer: A
Explanation: The Root Cause Analysis (RCA) is a structured process designed to focus on
system-level vulnerabilities rather than individual performance. By identifying the
underlying causes of a sentinel event, the organization can implement process changes that
significantly reduce the risk of recurrence and improve patient safety. A common mistake
is using the RCA as a disciplinary tool, which undermines a culture of safety and
discourages staff reporting.
,2. An organization is considering shifting from a ‘claims-made’ insurance policy to an
‘occurrence’ policy. What is the most critical factor the risk manager must address during this
transition?
A. Purchasing ‘nose’ or ‘tail’ coverage to bridge the gap in reporting periods.
B. The immediate reduction in premium costs for the current year.
C. Reporting all known incidents to the National Practitioner Data Bank.
D. Updating the bylaws to reflect the change in insurance carriers.
Correct Answer: A
Explanation: When moving from a claims-made policy, which only covers claims reported
during the policy period, to another form of coverage, ‘tail’ coverage (Extended Reporting
Period) or ‘nose’ coverage (Prior Acts coverage) is essential to ensure there is no gap for
incidents that occurred but were not yet reported. This protection prevents the
organization from facing catastrophic unfunded liabilities for past incidents. Candidates
often mistakenly believe that shifting policies automatically covers all prior acts without
specific endorsements.
3. A patient arrives at a rural hospital’s emergency department with symptoms of a stroke.
The facility lacks a neurosurgeon. Under EMTALA, what is the hospital’s primary obligation?
A. Verify the patient’s insurance coverage before initiating any specialized tests.
B. Immediately divert the ambulance to the nearest tertiary care center.
,C. Provide a medical screening examination (MSE) and stabilizing treatment within its
capabilities.
D. Contact the patient’s primary care physician to obtain authorization for transfer.
Correct Answer: C
Explanation: The Emergency Medical Treatment and Labor Act (EMTALA) requires
hospitals to provide a Medical Screening Exam (MSE) to determine if an emergency medical
condition exists, regardless of the patient’s ability to pay. If a condition exists, the hospital
must stabilize the patient to the best of its ability before arranging a safe transfer to a
facility with higher capabilities. A frequent error is delaying the MSE to collect financial
information or failing to document the stabilization efforts properly.
4. In the context of Enterprise Risk Management (ERM), which of the following best describes
the ‘Human Capital’ domain?
A. The financial reserves set aside for employee healthcare benefits.
B. Risks related to recruitment, retention, staffing levels, and employee safety.
C. The maintenance of medical equipment and physical plant infrastructure.
D. The ethical guidelines governing clinical research on human subjects.
Correct Answer: B
Explanation: The Human Capital domain in ERM focuses on the organization’s workforce,
including issues such as physician burnout, nursing shortages, worker’s compensation, and
credentialing. Effective management of this domain ensures that the organization has a
, competent and healthy workforce to deliver safe patient care, thereby reducing clinical and
operational risks. Risk managers sometimes overlook human capital, focusing too narrowly
on financial or clinical risks, yet workforce instability is a leading cause of medical errors.
5. A surgeon performs a procedure on the wrong kidney. The risk manager should advise the
clinical team to take which immediate action regarding the patient?
A. Disclose the facts of the incident to the patient or their representative as soon as
possible.
B. Withhold information about the error until a full legal review is completed.
C. Offer an immediate financial settlement to prevent the patient from hiring an attorney.
D. Update the medical record to omit the details of the wrong-site surgery.
Correct Answer: A
Explanation: Ethical and regulatory standards (such as Joint Commission requirements)
mandate the disclosure of unanticipated outcomes to patients. Early, transparent
communication fosters trust and can actually decrease the likelihood of aggressive
litigation while upholding the patient’s right to know. A common mistake is delaying
disclosure due to fear of liability, which often leads to greater legal complications and
severe reputational damage.
6. A hospital is sued for ‘corporate negligence.’ What is the primary basis for this legal
theory?
A. The hospital is responsible for the actions of its employees under respondeat superior.
Management (CPHRM) Mock Examination –
Comprehensive Risk Management Practice
Questions
1. A hospital experiences a sentinel event involving a medication error. The risk manager
initiates a Root Cause Analysis (RCA). What is the primary objective of this process?
A. To identify system-level vulnerabilities and prevent future occurrences.
B. To satisfy state regulatory reporting requirements for adverse events.
C. To identify which individual staff member is most responsible for the error.
D. To document evidence for the hospital’s legal defense team in anticipation of litigation.
Correct Answer: A
Explanation: The Root Cause Analysis (RCA) is a structured process designed to focus on
system-level vulnerabilities rather than individual performance. By identifying the
underlying causes of a sentinel event, the organization can implement process changes that
significantly reduce the risk of recurrence and improve patient safety. A common mistake
is using the RCA as a disciplinary tool, which undermines a culture of safety and
discourages staff reporting.
,2. An organization is considering shifting from a ‘claims-made’ insurance policy to an
‘occurrence’ policy. What is the most critical factor the risk manager must address during this
transition?
A. Purchasing ‘nose’ or ‘tail’ coverage to bridge the gap in reporting periods.
B. The immediate reduction in premium costs for the current year.
C. Reporting all known incidents to the National Practitioner Data Bank.
D. Updating the bylaws to reflect the change in insurance carriers.
Correct Answer: A
Explanation: When moving from a claims-made policy, which only covers claims reported
during the policy period, to another form of coverage, ‘tail’ coverage (Extended Reporting
Period) or ‘nose’ coverage (Prior Acts coverage) is essential to ensure there is no gap for
incidents that occurred but were not yet reported. This protection prevents the
organization from facing catastrophic unfunded liabilities for past incidents. Candidates
often mistakenly believe that shifting policies automatically covers all prior acts without
specific endorsements.
3. A patient arrives at a rural hospital’s emergency department with symptoms of a stroke.
The facility lacks a neurosurgeon. Under EMTALA, what is the hospital’s primary obligation?
A. Verify the patient’s insurance coverage before initiating any specialized tests.
B. Immediately divert the ambulance to the nearest tertiary care center.
,C. Provide a medical screening examination (MSE) and stabilizing treatment within its
capabilities.
D. Contact the patient’s primary care physician to obtain authorization for transfer.
Correct Answer: C
Explanation: The Emergency Medical Treatment and Labor Act (EMTALA) requires
hospitals to provide a Medical Screening Exam (MSE) to determine if an emergency medical
condition exists, regardless of the patient’s ability to pay. If a condition exists, the hospital
must stabilize the patient to the best of its ability before arranging a safe transfer to a
facility with higher capabilities. A frequent error is delaying the MSE to collect financial
information or failing to document the stabilization efforts properly.
4. In the context of Enterprise Risk Management (ERM), which of the following best describes
the ‘Human Capital’ domain?
A. The financial reserves set aside for employee healthcare benefits.
B. Risks related to recruitment, retention, staffing levels, and employee safety.
C. The maintenance of medical equipment and physical plant infrastructure.
D. The ethical guidelines governing clinical research on human subjects.
Correct Answer: B
Explanation: The Human Capital domain in ERM focuses on the organization’s workforce,
including issues such as physician burnout, nursing shortages, worker’s compensation, and
credentialing. Effective management of this domain ensures that the organization has a
, competent and healthy workforce to deliver safe patient care, thereby reducing clinical and
operational risks. Risk managers sometimes overlook human capital, focusing too narrowly
on financial or clinical risks, yet workforce instability is a leading cause of medical errors.
5. A surgeon performs a procedure on the wrong kidney. The risk manager should advise the
clinical team to take which immediate action regarding the patient?
A. Disclose the facts of the incident to the patient or their representative as soon as
possible.
B. Withhold information about the error until a full legal review is completed.
C. Offer an immediate financial settlement to prevent the patient from hiring an attorney.
D. Update the medical record to omit the details of the wrong-site surgery.
Correct Answer: A
Explanation: Ethical and regulatory standards (such as Joint Commission requirements)
mandate the disclosure of unanticipated outcomes to patients. Early, transparent
communication fosters trust and can actually decrease the likelihood of aggressive
litigation while upholding the patient’s right to know. A common mistake is delaying
disclosure due to fear of liability, which often leads to greater legal complications and
severe reputational damage.
6. A hospital is sued for ‘corporate negligence.’ What is the primary basis for this legal
theory?
A. The hospital is responsible for the actions of its employees under respondeat superior.
