CPCU 500 Final Exam Review Questions
And Answers
fundamental purpose of risk management framework -
correct answer ✅integrate risk management throughout the
organization
the four quadrants of risk focus on -
correct answer ✅the source of risk and who has traditionally
managed it
what is accurate regarding pure and speculative risks -
correct answer ✅every business venture involves speculative risks
separation example -
correct answer ✅an organization that operates warehouses in two
locations is using the risk control technique of...
separation -
correct answer ✅disperses a particular asset or activity over
several locations and regularly relies on that asset or activity as part
of an organizations working resources
, CPCU 500 Final Exam Review Questions
And Answers
avoidance -
correct answer ✅trying to reduce property damage; reduce
probability of loss to zero
When negotiating noninsurance risk transfer terms, risk
management professionals should consider the -
correct answer ✅legal enforceability of contract provisions
large deductible plan purpose -
correct answer ✅defer cash outflows for retained loss reserves
construction contracts -
correct answer ✅landowner harmless for certain construction-
related claims
to address municipal human resource risk, should review -
correct answer ✅retirement and resignation
fiduciary -
correct answer ✅duties like care, loyalty, disclosure, and
obedience for officers
And Answers
fundamental purpose of risk management framework -
correct answer ✅integrate risk management throughout the
organization
the four quadrants of risk focus on -
correct answer ✅the source of risk and who has traditionally
managed it
what is accurate regarding pure and speculative risks -
correct answer ✅every business venture involves speculative risks
separation example -
correct answer ✅an organization that operates warehouses in two
locations is using the risk control technique of...
separation -
correct answer ✅disperses a particular asset or activity over
several locations and regularly relies on that asset or activity as part
of an organizations working resources
, CPCU 500 Final Exam Review Questions
And Answers
avoidance -
correct answer ✅trying to reduce property damage; reduce
probability of loss to zero
When negotiating noninsurance risk transfer terms, risk
management professionals should consider the -
correct answer ✅legal enforceability of contract provisions
large deductible plan purpose -
correct answer ✅defer cash outflows for retained loss reserves
construction contracts -
correct answer ✅landowner harmless for certain construction-
related claims
to address municipal human resource risk, should review -
correct answer ✅retirement and resignation
fiduciary -
correct answer ✅duties like care, loyalty, disclosure, and
obedience for officers
