Risk Management - CMCA Test Preparation Question with answers solved 2023

Risk Management - CMCA Test Preparation Question with answers solved 2023TRUE TRUE or FALSE Risk management is the process of making and carrying out decisions that will minimize the adverse effects of accidental losses upon the community association. c. income exposure to loss What type of Exposure to Loss for a community association is characterized by net losses that may involve a reduction in income or an increase in operating expenses or both? a. property exposure to loss b. liability exposure to loss c. income exposure to loss d. personnel exposure to loss d. personnel exposure to loss What type of Exposure to Loss for a community association is characterized by claims by employees regarding discrimination in hiring or firing, harassment, or other allegation. a. property exposure to loss b. liability exposure to loss c. income exposure to loss d. personnel exposure to loss b. liability exposure to loss What type of Exposure to Loss for a community association is characterized by damage to non-association property or to a person, arising when a person or entity threatens or actually brings a legal claim against the community association, its members, or others whom it must indemnify by contract? a. property exposure to loss b. liability exposure to loss c. income exposure to loss d. personnel exposure to loss a. property exposure to loss What type of Exposure to Loss for a community association is characterized by tangible losses to association property such as buildings and their contents or Intangible, such as the loss of information or someone hacking into the community website. a. property exposure to loss b. liability exposure to loss c. income exposure to loss d. personnel exposure to loss TRUE Surveys and questionnaires Financial Reports - Asset entries detail property exposures and liability entries explain continuing obligations. Records, files and documents Flowcharts detail association paper flow and critical tasks. Personal Inspections Hire experts, including Reserve Specialists, insurance risk managers and qualified general contractors TRUE OR FALSE: The following resources can help identify exposures to loss: Surveys and questionnaires Financial Reports Records, files and documents Flowcharts Personal Inspections Experts b. Frequency Tests of Significance: Loss __________ refers to the number of times a financially adverse event occurs or is expected to occur. a. Severity b. Frequency a. Severity Tests of Significance: Loss __________ refers to the expected dollar loss when a financially adverse event occurs. a. Severity b. Frequency 1. c. Loss reduction 2. b. Loss prevention 3. d. Segregation of exposures 4. e. Contractual transfer 5. a. Exposure Avoidance Risk Control is a one way to treat the primary exposures to loss. Match the terms: 1. Minimize the severity of the loss if something does happen. 2. Take steps to reduce the likelihood of a potential loss. 3. Separating and duplicating activities and personnel performing them. 4. Moving the legal and fiscal responsibility to another party. 5. Eliminating the chance of loss by stopping or never starting an activity. a. Exposure Avoidance b. Loss prevention c. Loss reduction d. Segregation of exposures e. Contractual transfer 1. (b) Income 2. (d) Liability 3. (c) Personnel 4. (a) Property Match the Types of Insurance Coverages: 1. Covers losses from a reduction in revenue and/or an increase in expense 2. Covers damage to non-association property or to a person when a legal claim is brought against the association 3. Covers losses from claims of an employee against the association 4. Covers losses to tangible or intangible community association property a. Property b. Income c. Personnel d. Liability TRUE TRUE OR FALSE Liability insurance helps with situations in which a civil legal claim is brought against the association because of a legal wrong it is alleged to have directly committed or for which it is supposedly responsible.