ASHRM Certified Professional in Healthcare Risk
Management (CPHRM) Examination –
Comprehensive Practice Questions and Detailed
Answers
1. A Risk Manager is implementing an Enterprise Risk Management (ERM) framework. Which
domain primarily addresses risks associated with the organization’s brand, reputation, and its
ability to achieve its long-term mission and goals?
A. Strategic
B. Operational
C. Financial
D. Human Capital
Correct Correct Answer: A
Explanation: The Strategic domain focuses on an organization’s high-level goals and its
ability to adapt to external changes such as market shifts or reputational damage. By
addressing strategic risks, the Risk Manager ensures the organization remains competitive
and aligned with its mission. A common pitfall in the exam is confusing Strategic risk with
Operational risk, which focuses more on internal processes and daily delivery of care.
2. Following a sentinel event, a healthcare organization conducts a Root Cause Analysis (RCA).
What is the primary purpose of this retrospective tool?
A. To assign blame to the individuals involved in the error
,B. To satisfy the requirements of the hospital’s malpractice insurer
C. To identify systems-level vulnerabilities that contributed to the event
D. To provide documentation for the legal defense team in a potential lawsuit
Correct Correct Answer: C
Explanation: Root Cause Analysis (RCA) is a structured process designed to identify
underlying system failures rather than individual performance issues. This focus on
systems helps the organization implement sustainable changes to prevent recurrence,
thereby improving patient safety. An examination pitfall is viewing RCA as a disciplinary
tool; in a Just Culture, the emphasis is on system improvement.
3. A physician’s office is sued for medical malpractice, and the Risk Manager notes that the
policy in place is a ‘claims-made’ policy. What is required for coverage to apply to a new claim
filed today for an incident that occurred two years ago?
A. The incident must have occurred during the current policy year
B. The incident must have occurred after the policy’s retroactive date and the claim must
be reported during the current policy period
C. The policy must have been an occurrence-based policy when the incident happened
D. The physician must have purchased tail coverage at the time of the incident
Correct Correct Answer: B
,Explanation: Claims-made policies require that the incident occurs after the ‘retroactive
date’ and that the claim is first made and reported during the policy period. This differs
from occurrence policies, which cover incidents that happen during the policy period
regardless of when the claim is filed. Candidates often confuse these; understanding the
retroactive date is critical for financial risk planning and transitioning between insurance
carriers.
4. A patient arrives at the Emergency Department (ED) complaining of chest pain. Under the
Emergency Medical Treatment and Labor Act (EMTALA), what is the hospital’s first
obligation?
A. To provide a medical screening examination (MSE) to determine if an emergency
medical condition exists
B. To verify the patient’s insurance coverage and ability to pay
C. To immediately transfer the patient to a tertiary care facility
D. To obtain a full medical history and signed informed consent for admission
Correct Correct Answer: A
Explanation: EMTALA mandates that any individual who comes to the ED must receive a
medical screening examination (MSE) to determine if an emergency medical condition
(EMC) exists, regardless of their ability to pay. This requirement prevents ‘patient
dumping’ and ensures a baseline level of safety and equity in emergency care. Failing to
prioritize the MSE over financial inquiries is a significant regulatory risk and a common
point of confusion on the exam.
, 5. Which of the following scenarios best illustrates the legal concept of ‘Respondeat
Superior’?
A. A hospital is held liable for the negligent actions of a nurse employed by the hospital
while performing their duties
B. A physician is sued for a surgical error performed in their private clinic
C. A patient signs a waiver of liability prior to an experimental procedure
D. A manufacturer is sued for a defect in a medical device used during surgery
Correct Correct Answer: A
Explanation: ‘Respondeat Superior’ is a legal doctrine that holds an employer vicariously
liable for the negligent acts of its employees when those acts occur within the scope of their
employment. This concept is vital for risk managers as it highlights the financial and legal
exposure the hospital faces through its workforce. An exam pitfall is applying this to
independent contractors, where the hospital may not be liable unless ‘apparent agency’ is
established.
6. A Risk Manager is performing a Failure Mode and Effects Analysis (FMEA) on a new
medication dispensing process. Unlike RCA, FMEA is:
A. A proactive tool used to identify potential failure points before they occur
B. A retrospective analysis of past errors
C. A method for reporting incidents to the state department of health
D. A process for disciplining staff involved in near misses
Management (CPHRM) Examination –
Comprehensive Practice Questions and Detailed
Answers
1. A Risk Manager is implementing an Enterprise Risk Management (ERM) framework. Which
domain primarily addresses risks associated with the organization’s brand, reputation, and its
ability to achieve its long-term mission and goals?
A. Strategic
B. Operational
C. Financial
D. Human Capital
Correct Correct Answer: A
Explanation: The Strategic domain focuses on an organization’s high-level goals and its
ability to adapt to external changes such as market shifts or reputational damage. By
addressing strategic risks, the Risk Manager ensures the organization remains competitive
and aligned with its mission. A common pitfall in the exam is confusing Strategic risk with
Operational risk, which focuses more on internal processes and daily delivery of care.
2. Following a sentinel event, a healthcare organization conducts a Root Cause Analysis (RCA).
What is the primary purpose of this retrospective tool?
A. To assign blame to the individuals involved in the error
,B. To satisfy the requirements of the hospital’s malpractice insurer
C. To identify systems-level vulnerabilities that contributed to the event
D. To provide documentation for the legal defense team in a potential lawsuit
Correct Correct Answer: C
Explanation: Root Cause Analysis (RCA) is a structured process designed to identify
underlying system failures rather than individual performance issues. This focus on
systems helps the organization implement sustainable changes to prevent recurrence,
thereby improving patient safety. An examination pitfall is viewing RCA as a disciplinary
tool; in a Just Culture, the emphasis is on system improvement.
3. A physician’s office is sued for medical malpractice, and the Risk Manager notes that the
policy in place is a ‘claims-made’ policy. What is required for coverage to apply to a new claim
filed today for an incident that occurred two years ago?
A. The incident must have occurred during the current policy year
B. The incident must have occurred after the policy’s retroactive date and the claim must
be reported during the current policy period
C. The policy must have been an occurrence-based policy when the incident happened
D. The physician must have purchased tail coverage at the time of the incident
Correct Correct Answer: B
,Explanation: Claims-made policies require that the incident occurs after the ‘retroactive
date’ and that the claim is first made and reported during the policy period. This differs
from occurrence policies, which cover incidents that happen during the policy period
regardless of when the claim is filed. Candidates often confuse these; understanding the
retroactive date is critical for financial risk planning and transitioning between insurance
carriers.
4. A patient arrives at the Emergency Department (ED) complaining of chest pain. Under the
Emergency Medical Treatment and Labor Act (EMTALA), what is the hospital’s first
obligation?
A. To provide a medical screening examination (MSE) to determine if an emergency
medical condition exists
B. To verify the patient’s insurance coverage and ability to pay
C. To immediately transfer the patient to a tertiary care facility
D. To obtain a full medical history and signed informed consent for admission
Correct Correct Answer: A
Explanation: EMTALA mandates that any individual who comes to the ED must receive a
medical screening examination (MSE) to determine if an emergency medical condition
(EMC) exists, regardless of their ability to pay. This requirement prevents ‘patient
dumping’ and ensures a baseline level of safety and equity in emergency care. Failing to
prioritize the MSE over financial inquiries is a significant regulatory risk and a common
point of confusion on the exam.
, 5. Which of the following scenarios best illustrates the legal concept of ‘Respondeat
Superior’?
A. A hospital is held liable for the negligent actions of a nurse employed by the hospital
while performing their duties
B. A physician is sued for a surgical error performed in their private clinic
C. A patient signs a waiver of liability prior to an experimental procedure
D. A manufacturer is sued for a defect in a medical device used during surgery
Correct Correct Answer: A
Explanation: ‘Respondeat Superior’ is a legal doctrine that holds an employer vicariously
liable for the negligent acts of its employees when those acts occur within the scope of their
employment. This concept is vital for risk managers as it highlights the financial and legal
exposure the hospital faces through its workforce. An exam pitfall is applying this to
independent contractors, where the hospital may not be liable unless ‘apparent agency’ is
established.
6. A Risk Manager is performing a Failure Mode and Effects Analysis (FMEA) on a new
medication dispensing process. Unlike RCA, FMEA is:
A. A proactive tool used to identify potential failure points before they occur
B. A retrospective analysis of past errors
C. A method for reporting incidents to the state department of health
D. A process for disciplining staff involved in near misses
