CPFO-Risk Management Questions With Complete
Solutions
About how many local govts use risk pools? Correct Answers
About 80%.
For which type of risks might a govt be more likely to consider
self insurance? Correct Answers For low severity or low
frequency losses.
How is the strictest form of risk avoidance done? Correct
Answers It is done by not providing the service that might cause
that risk to exist.
Name 3 types of risk management performance measures.
Correct Answers 1 workload (claims processed/year); 2
efficiency (claims processed per employee); 3 effectiveness (%
of claims resulting in litigation)
Name 4 risk management tools. Correct Answers 1 loss
prevention and control; 2 risk transfer; 3 risk retention; 4 risk
avoidance
Name 6 types of loss that can result in economic loss (Risk
Identification)? Correct Answers 1 legal liability to others; 2
property loss; 3 extra expense (replacement/re-establish); 4 loss
of income; 5 human resource loss; 6 crime/fidelity loss
Name an example of a dept-based risk exposure. Correct
Answers Cash handling, specialized golf course.
, Name an example of a geography-based risk exposure. Correct
Answers Earthquake, flood or marine safety.
Name an example of a project-based risk exposure. Correct
Answers Redevelopment of a blighted district.
Name an example of Cognitive Environmental Risk? Correct
Answers The absence of information, attitude of individuals
toward risk
Name an example of Economic Environmental Risk? Correct
Answers Market trends, interest rates
Name an example of Legal Environmental Risk? Correct
Answers Laws and legal precedents
Name an example of Operational Environmental Risk? Correct
Answers Day-to-day activities
Name an example of Physical Environmental Risk? Correct
Answers Weather events
Name an example of Social Environmental Risk? Correct
Answers Cultural composition of community, social attitudes
and preferences
What are common tasks of a Risk Management Committee?
Correct Answers 1 creating risk mgmt policy; 2 developing
inspection pgms; 3 designing safety orientation pgms; 4 creating
accident and claims investigation systems; 5 identifying safety
Solutions
About how many local govts use risk pools? Correct Answers
About 80%.
For which type of risks might a govt be more likely to consider
self insurance? Correct Answers For low severity or low
frequency losses.
How is the strictest form of risk avoidance done? Correct
Answers It is done by not providing the service that might cause
that risk to exist.
Name 3 types of risk management performance measures.
Correct Answers 1 workload (claims processed/year); 2
efficiency (claims processed per employee); 3 effectiveness (%
of claims resulting in litigation)
Name 4 risk management tools. Correct Answers 1 loss
prevention and control; 2 risk transfer; 3 risk retention; 4 risk
avoidance
Name 6 types of loss that can result in economic loss (Risk
Identification)? Correct Answers 1 legal liability to others; 2
property loss; 3 extra expense (replacement/re-establish); 4 loss
of income; 5 human resource loss; 6 crime/fidelity loss
Name an example of a dept-based risk exposure. Correct
Answers Cash handling, specialized golf course.
, Name an example of a geography-based risk exposure. Correct
Answers Earthquake, flood or marine safety.
Name an example of a project-based risk exposure. Correct
Answers Redevelopment of a blighted district.
Name an example of Cognitive Environmental Risk? Correct
Answers The absence of information, attitude of individuals
toward risk
Name an example of Economic Environmental Risk? Correct
Answers Market trends, interest rates
Name an example of Legal Environmental Risk? Correct
Answers Laws and legal precedents
Name an example of Operational Environmental Risk? Correct
Answers Day-to-day activities
Name an example of Physical Environmental Risk? Correct
Answers Weather events
Name an example of Social Environmental Risk? Correct
Answers Cultural composition of community, social attitudes
and preferences
What are common tasks of a Risk Management Committee?
Correct Answers 1 creating risk mgmt policy; 2 developing
inspection pgms; 3 designing safety orientation pgms; 4 creating
accident and claims investigation systems; 5 identifying safety
