Risk Management - CMCA Test Preparation Questions and answers.

TRUE - ANSWER - 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 - ANSWER - 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 - ANSWER - 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 - ANSWER - 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 - ANSWER - 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 - ANSWER - TRUE OR FALSE: