CPFO-Risk Management Exam Questions with Verified Answers Latest Update 2024 Already Passed
What is Risk? - Answers The chance of loss.
What is Operational Risk? - Answers Risks encountered in the course of delivering government services.
What is Speculative Risk? - Answers Risks associated with investments.
What is the goal of risk management? - Answers 1 to create a safe workplace; 2 to prevent catastrophic
financial loss; 3 to provide budgetary stability
What are the benefits of a risk management program? - Answers 1 allows for more effective use of govt
funds (than to buy insurance, property replacement, paying liability claims); 2 increases worker
productivity; 3 reduces uncertainties associated with future projects.
What are the fundamental activities in a risk management program? - Answers 1 risk identification; 2
risk evaluation; 3 risk treatment; 4 implementation
What is risk identification? - Answers Determining where there is potential exposure to loss.
What is risk evaluation? - Answers Viewing the potential for loss on the basis of frequency and severity
of an event.
What is risk treatment? - Answers Planning and developing a risk management program using
appropriate tools and techniques, such as risk control and risk financing.
What is implementation of a risk program? - Answers Taking steps to finance, begin and monitor the
program.
What risks are unique to public sector? - Answers 1 police/fire are dangerous and have potential for high
loss that govt cannot control risk by discontinuing a service; 2 broad scope of services (largest property
owner); 3 lacks total control over its environment (cannot limit access to its property)
What are the duties of the Risk Manager? - Answers 1 purchase insurance; 2 loss control; 3
administering claims; 4 monitoring litigation
What are some of the newer risks that concerns govt? - Answers 1 law enforcement (racial profiling,
video cameras); 2 employee-related (harassment, wrongful termination); 3 technology (email, privacy,
e-commerce)
What is the Alternative Market? - Answers It is risk pools or self-insurance, methods govts had to go to
when insurance became unaffordable or unavailable.
What is Enterprise Risk Management? - Answers It combines operational and financial risk.
What are the 7 sources of risk? - Answers 1 physical environment; 2 legal ; 3 operational; 4 political; 5
social; 6 economic; 7 cognitive
What is Risk? - Answers The chance of loss.
What is Operational Risk? - Answers Risks encountered in the course of delivering government services.
What is Speculative Risk? - Answers Risks associated with investments.
What is the goal of risk management? - Answers 1 to create a safe workplace; 2 to prevent catastrophic
financial loss; 3 to provide budgetary stability
What are the benefits of a risk management program? - Answers 1 allows for more effective use of govt
funds (than to buy insurance, property replacement, paying liability claims); 2 increases worker
productivity; 3 reduces uncertainties associated with future projects.
What are the fundamental activities in a risk management program? - Answers 1 risk identification; 2
risk evaluation; 3 risk treatment; 4 implementation
What is risk identification? - Answers Determining where there is potential exposure to loss.
What is risk evaluation? - Answers Viewing the potential for loss on the basis of frequency and severity
of an event.
What is risk treatment? - Answers Planning and developing a risk management program using
appropriate tools and techniques, such as risk control and risk financing.
What is implementation of a risk program? - Answers Taking steps to finance, begin and monitor the
program.
What risks are unique to public sector? - Answers 1 police/fire are dangerous and have potential for high
loss that govt cannot control risk by discontinuing a service; 2 broad scope of services (largest property
owner); 3 lacks total control over its environment (cannot limit access to its property)
What are the duties of the Risk Manager? - Answers 1 purchase insurance; 2 loss control; 3
administering claims; 4 monitoring litigation
What are some of the newer risks that concerns govt? - Answers 1 law enforcement (racial profiling,
video cameras); 2 employee-related (harassment, wrongful termination); 3 technology (email, privacy,
e-commerce)
What is the Alternative Market? - Answers It is risk pools or self-insurance, methods govts had to go to
when insurance became unaffordable or unavailable.
What is Enterprise Risk Management? - Answers It combines operational and financial risk.
What are the 7 sources of risk? - Answers 1 physical environment; 2 legal ; 3 operational; 4 political; 5
social; 6 economic; 7 cognitive
