CRM PRINCIPLES OF RISK MANAGEMENT EXAM QUESTIONS AND ANSWERS 2025

CRM PRINCIPLES OF RISK 2024
MANAGEMENT EXAM
ANSWER ALL QUESTIONS IN THIS SECTION



QUESTION 1



Define and list the four elements of Negligence (unintentional tort) - ANSWERS-
1) duty owed



2) breach of that duty



3) causation



4) damage



QUESTION 2



List the four requirements of an enforceable contract and describe their remedies. -
ANSWERS-1) Competent parties



2) Agreement or assent



3) legal consideration (exchange of values)

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, CRM PRINCIPLES OF RISK 2024
MANAGEMENT EXAM

4) Legal purposes



QUESTION 3



Identify the purpose of checklists and surveys. - ANSWERS-To systematically
identify as many exposures, perils and hazards as possible.



QUESTION 4



Identify the characteristics of checklists and surveys (6). - ANSWERS-1)
Standardized



2) minimal training for use



3) cannot cover all operations



4) may not identify new exposures



5) will no reflect severity



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, CRM PRINCIPLES OF RISK 2024
MANAGEMENT EXAM
6) does not prioritize severity



QUESTION 5



Identify the purpose of flowcharts. - ANSWERS-to graphically and sequentially
depict the activities of a particular operations or process to identify exposures,
perils, and hazards.



QUESTION 6



Identify the characteristics of flowcharts (5). - ANSWERS-1) Illustrates
interdependency



2) pinpoints bottlenecks



3) does not indicate frequency or severity



4) does not show minor process with major loss potential



5) limited applicability to liability exposures



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