CPFO_RISK_ASSESSMENT_COMPREHENSIVE_STUDY_GUIDE_2026_SOLVED_QUESTIONS

CPFO RISK ASSESSMENT COMPREHENSIVE
STUDY GUIDE 2026 SOLVED QUESTIONS
AND CORRECT ANSWERS

●● COSO
Answer: Committee defining ERM and risk management processes.


●● Risk Identification
Answer: Process to identify exposures in various environments.


●● Physical Environment Risks
Answer: Natural or man-made disasters affecting operations.


●● Legal & Ethical Environment
Answer: Risks arising from laws and ethical standards.


●● Operational Environment
Answer: Risks from day-to-day activities and services.


●● Political Environment
Answer: Risks from legislative activities impacting operations.

,●● Social Environment
Answer: Economic composition risks within the community.


●● Economic Environment
Answer: Market trends and interest rates affecting risks.


●● Emerging Risks
Answer: New risks like cyber security threats.


●● Internal Risks
Answer: Individual attitudes towards risk within the organization.


●● Risk Evaluation
Answer: Monitoring frequency and severity of claims.


●● Risk Treatment
Answer: Deciding how to address identified risk exposures.


●● Loss Prevention & Control
Answer: Training and inspections to prevent losses.

, ●● Risk Transfer
Answer: Shifting risk through financial or contractual means.


●● Financial Risk
Answer: Insurance covering property, liability, and workers' comp.


●● Contractual Risk
Answer: Liability assumed by contractors in agreements.


●● Risk Retention
Answer: Self-insurance where government assumes some losses.


●● Risk Avoidance
Answer: Choosing not to provide services due to risk.


●● Risk Management Implementation
Answer: Establishing policies for risk-related functions.


●● Risk Program Review
Answer: Evaluating effectiveness of risk management programs.


●● Dynamic Risk Assessment