©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:11PM.
CPCU 500 Exam Questions And Answers
2025 Update.
Traditional Risk Assessment - Answer✔relies on root cause analysis RCA to identify the
predominant cause of loss
What is the inherent weakness of Root Cause Analysis - Answer✔It can only look backward and
may fail to identify all root causes
Big Data is? - Answer✔Sets of data that are too large to gather and analyze using traditional
methods
3 big data items that transformed the risk management environment - Answer✔1. Data
Capture
2. Data Storage (The Cloud)
3. Data Analytics
RiskTech - Answer✔Integrates risk monitoring and mitigation technology to make risk financing
more efficient while preventing and mitigating risk
RiskTech combines what two things to analyze big data? - Answer✔Risktech uses emerging
technologies combined with smart products
Risktech Ecosystem does what? - Answer✔Emerging technologies are integrated into smart
products and smart operations to provide data for big data analytics to provide risk assessment
and risk control
Artificial Intelligence - Answer✔Computer processing that simulates human reasoning and
knowledge and lets computers perform tasks that require critical thinking.
Sensors/Sensor Networks - Answer✔Detect and measure conditions on an ongoing basis to
warn of impending problems/ determine if expected results have occured
Transducer - Answer✔converts one form of energy into another
Actuator - Answer✔turns energy into motion or makes changes a change in position or rotation
using a signal and an energy source
1
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:11PM.
Accelerometer - Answer✔measures acceleration, motion, and tilt
Digital Twin - Answer✔Separate digital profile of a physical object that takes data from the
physical object, analyzes that data and provides alerts or takes action when necessary
What are the 4 classifications of sensors - Answer✔Mechanical, Thermal, Radiant, Biochemical
Computer Vision - Answer✔Technology that simulates human vision to identify objects, put
them in context and respond appropriately
e.g - self driving cars
The Risk Management Process - Answer✔The set of ongoing, interconnected activities that
define the firm's approach to managing risks.
What are the five activities of the risk management process? - Answer✔1. Scan the
environment
2. Identify Risks
3. Analyze Risks
4. Treat Risks
5. Monitor and review Critical tasks
What is the first step of the risk management process and what is done? - Answer✔1. Scan the
environment - firm performs a specific, detailed review of the firm's internal AND external
environments and evaluates how each of the firm's risk management processes aligns with the
firm's objectives.
What is Risk Criteria - Answer✔refers to the standards, measures, and expectations that are
used to judge the significance of a specific risk in the context of a firms strategic goals.
Factors to consider when defining risk criteria? - Answer✔1. Causes of risk
2. Effects of risk
3. Metrics used to measure effects of risk
4. Timeframes of potential effects
5. methods to determine the level of risk
6. approaches to combinations of risk
What is the second step of the risk management process and what is done? - Answer✔Identify
Risks - the firms performs risk assessments to discover risks, the firm must identify key and
emerging risks that could prevent the firms from meeting its objectives.
2
CPCU 500 Exam Questions And Answers
2025 Update.
Traditional Risk Assessment - Answer✔relies on root cause analysis RCA to identify the
predominant cause of loss
What is the inherent weakness of Root Cause Analysis - Answer✔It can only look backward and
may fail to identify all root causes
Big Data is? - Answer✔Sets of data that are too large to gather and analyze using traditional
methods
3 big data items that transformed the risk management environment - Answer✔1. Data
Capture
2. Data Storage (The Cloud)
3. Data Analytics
RiskTech - Answer✔Integrates risk monitoring and mitigation technology to make risk financing
more efficient while preventing and mitigating risk
RiskTech combines what two things to analyze big data? - Answer✔Risktech uses emerging
technologies combined with smart products
Risktech Ecosystem does what? - Answer✔Emerging technologies are integrated into smart
products and smart operations to provide data for big data analytics to provide risk assessment
and risk control
Artificial Intelligence - Answer✔Computer processing that simulates human reasoning and
knowledge and lets computers perform tasks that require critical thinking.
Sensors/Sensor Networks - Answer✔Detect and measure conditions on an ongoing basis to
warn of impending problems/ determine if expected results have occured
Transducer - Answer✔converts one form of energy into another
Actuator - Answer✔turns energy into motion or makes changes a change in position or rotation
using a signal and an energy source
1
, ©THEBRIGHT 2025 ALL RIGHTS RESERVED 11:11PM.
Accelerometer - Answer✔measures acceleration, motion, and tilt
Digital Twin - Answer✔Separate digital profile of a physical object that takes data from the
physical object, analyzes that data and provides alerts or takes action when necessary
What are the 4 classifications of sensors - Answer✔Mechanical, Thermal, Radiant, Biochemical
Computer Vision - Answer✔Technology that simulates human vision to identify objects, put
them in context and respond appropriately
e.g - self driving cars
The Risk Management Process - Answer✔The set of ongoing, interconnected activities that
define the firm's approach to managing risks.
What are the five activities of the risk management process? - Answer✔1. Scan the
environment
2. Identify Risks
3. Analyze Risks
4. Treat Risks
5. Monitor and review Critical tasks
What is the first step of the risk management process and what is done? - Answer✔1. Scan the
environment - firm performs a specific, detailed review of the firm's internal AND external
environments and evaluates how each of the firm's risk management processes aligns with the
firm's objectives.
What is Risk Criteria - Answer✔refers to the standards, measures, and expectations that are
used to judge the significance of a specific risk in the context of a firms strategic goals.
Factors to consider when defining risk criteria? - Answer✔1. Causes of risk
2. Effects of risk
3. Metrics used to measure effects of risk
4. Timeframes of potential effects
5. methods to determine the level of risk
6. approaches to combinations of risk
What is the second step of the risk management process and what is done? - Answer✔Identify
Risks - the firms performs risk assessments to discover risks, the firm must identify key and
emerging risks that could prevent the firms from meeting its objectives.
2
