CPHRM Practice Test Questions with Verified
Correct Answers
Adverse Event
Negative or bad result stemming from a diagnostic test, medical treatment, or surgical
intervention; an injury resulting from a medical intervention.
ERM
Enterprise Risk Management-framework for making risk management decisions which
maximize value protection creation by managing risk and uncertainty and their connection to
total value.
Lex Loci Delicti Commissi
Law of the place where the Tort was committed.
Vicarious liability
Imposition of liability on one person for actionable conduct of another. I.e. liability of an
employer for the acts of an employee.
Due Diligence
Review of an entity targeted for acquisition to ascertain pertinent information. Adequate
review.
COSO
Committee of Sponsoring Organizations - Independent private sector initiative which
recommended ERM structure and implementation.
Darling v. Charleston Community Hospital
, Landmark case from 1965 that determined hospitals have an independent duty to ensure high-
quality care.
Risk
Chance of loss.
Pure Risk
Uncertainty as to whether loss will occur. Insurable.
Speculative Risk
Uncertainty about an event that could produce loss. Generally not insurable.
Right to know
Laws that require employers to provide information, education and/or treatment to employees
regarding hazardous materials to which employees may be exposed during their employment.
Value Protection
Preventing loss and harm to assets, reputation, property and people and is reactive.
Collective Bargaining
Negotiations to determine condition of employment.
benchmark
Process of finding what is behind the numbers.
Subrogation
The substitution of one entity for another with regard to legal rights.
Wording for Questions
Correct Answers
Adverse Event
Negative or bad result stemming from a diagnostic test, medical treatment, or surgical
intervention; an injury resulting from a medical intervention.
ERM
Enterprise Risk Management-framework for making risk management decisions which
maximize value protection creation by managing risk and uncertainty and their connection to
total value.
Lex Loci Delicti Commissi
Law of the place where the Tort was committed.
Vicarious liability
Imposition of liability on one person for actionable conduct of another. I.e. liability of an
employer for the acts of an employee.
Due Diligence
Review of an entity targeted for acquisition to ascertain pertinent information. Adequate
review.
COSO
Committee of Sponsoring Organizations - Independent private sector initiative which
recommended ERM structure and implementation.
Darling v. Charleston Community Hospital
, Landmark case from 1965 that determined hospitals have an independent duty to ensure high-
quality care.
Risk
Chance of loss.
Pure Risk
Uncertainty as to whether loss will occur. Insurable.
Speculative Risk
Uncertainty about an event that could produce loss. Generally not insurable.
Right to know
Laws that require employers to provide information, education and/or treatment to employees
regarding hazardous materials to which employees may be exposed during their employment.
Value Protection
Preventing loss and harm to assets, reputation, property and people and is reactive.
Collective Bargaining
Negotiations to determine condition of employment.
benchmark
Process of finding what is behind the numbers.
Subrogation
The substitution of one entity for another with regard to legal rights.
Wording for Questions
