CPCU 500: Exam Assignment 1 Exam
Question And Answers
1. Which one of the following is essential to an effective risk management program? - ANSWER ✔ -
Support of the organization's senior management
2. The cost of a risk management technique can be determined through a - ANSWER ✔ - cost-benefit
analysis that considers the technique's effect on the frequency, severity, and timing of expected
losses relative to an estimate of the after-tax costs involved in applying the various risk management
techniques.
3. A new computer chip that could position a company for explosive growth is an example of - ANSWER
✔ - Strategic risk.
4. Which one of the following is usually the single largest impediment to successful implementation of
enterprise risk management (ERM) - ANSWER ✔ - The traditional organizational culture. Traditional
organizational culture with entrenched risk silos often makes implementation of an ERM program
difficult.
5. The use of data gleaned from sensors to react immediately to hazardous situations is known as -
ANSWER ✔ - Real-time risk management
6. Which one of the following products has led to significant improvements in supply chain
management by allowing for the immediate identification of discrepancies and interruptions as well
as timely actions that can prevent or reduce losses? - ANSWER ✔ - Closed-loop system
7. Which one of the following costs is part of the overall financial consequences of risk? - ANSWER ✔ -
The cost of the value lost due to events that caused a loss
Page | 1
CPCU 500
©®
Question And Answers
1. Which one of the following is essential to an effective risk management program? - ANSWER ✔ -
Support of the organization's senior management
2. The cost of a risk management technique can be determined through a - ANSWER ✔ - cost-benefit
analysis that considers the technique's effect on the frequency, severity, and timing of expected
losses relative to an estimate of the after-tax costs involved in applying the various risk management
techniques.
3. A new computer chip that could position a company for explosive growth is an example of - ANSWER
✔ - Strategic risk.
4. Which one of the following is usually the single largest impediment to successful implementation of
enterprise risk management (ERM) - ANSWER ✔ - The traditional organizational culture. Traditional
organizational culture with entrenched risk silos often makes implementation of an ERM program
difficult.
5. The use of data gleaned from sensors to react immediately to hazardous situations is known as -
ANSWER ✔ - Real-time risk management
6. Which one of the following products has led to significant improvements in supply chain
management by allowing for the immediate identification of discrepancies and interruptions as well
as timely actions that can prevent or reduce losses? - ANSWER ✔ - Closed-loop system
7. Which one of the following costs is part of the overall financial consequences of risk? - ANSWER ✔ -
The cost of the value lost due to events that caused a loss
Page | 1
CPCU 500
©®
