CPFO Risk Management Questions With 100% Correct Answers.

Risk - chance of loss, associated with delivery of public services Risk Management Program Benefits an effective risk management program highlights better ways to prevent and pay for accidental losses, greatly eliminating concerns over the consequences associated with a governments future project. - 1. Allows for a more effective use of government funds. 2. increases worker productivity (preventing worksite accidents. 3. Reduces uncertainties associated with future projects, including budgetary uncertainty (e.g. new park) or change in service delivery (e.g. outsourcing garbage collection. Fundamental Activities in a Risk Management - 1. Risk Identification 2.Risk Evaluation 3. Risk Treatment 4. Implementation Risk Identification - determining where there is potential exposure to loss Risk Evaluation - viewing potential for loss on the basis of the frequency and severity of an event, using historical and other data Implementation - taking step to finance and then begin the program. ongoing monitoring, performance benchmarks Risks unique to public sector - 1. Critical activities police and fire 2. government footprint like property, parks, largest property manager 3. government typically lacks total control over physical environment. some place open for 24 hours a day like roadways.Risk Management Activities - Purchasing insurance, loss control, administering claims, monitoring litigation Trends in risk management - New risks, costlier litigation, evolving role of intergovernmental risk pools, technology, better data on losses