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CPCU 500 Exam Study Guide 2023/ 357 Questions With Verified Answers 100% Score!!!
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CPCU 500 Exam Study Guide 2023/ 357 QuestionsWith Verified Answers 100% Score!!!
Quiz :In the context of risk, the chance of being injured while driving to and
from work, loading a truck at work, moving furniture at home, or falling in an
icy parking lot at the mall are all examples of
A. Possibilities.
B. Uncertainties.
C. Probabilities.
D. Losses. - Answer :A. Possibilities.
Quiz :The statement, "There is a five percent chance that John will be injured
in an automobile accident while driving to work tomorrow," is an example of
A. Quantifying risk.
B. Verifying risk.
C. Quantifying loss exposures.
D. Identifying hazards. - Answer :A. Quantifying risk.
Quiz :Which one of the following is measurable and quantifies risk?
A. Probability
B. Possibility
C. Uncertainty
D. Feasibility - Answer :A. Probability
Quiz :One of the elements of risk is uncertainty. Which one of the following
best describes the uncertainty that risk involves?
A. Uncertainty as to how to manage potential losses
,B. Uncertainty as to whether a negative outcome is possible
C. Uncertainty as to the type and timing of an outcome
D. Uncertainty as to whether insurance is available - Answer :C. Uncertainty as
to the type and timing of an outcome
Quiz :Hardware Store has been able to control its prices and inventory since it
has no competitors. A new highway currently being constructed is going to
allow increased competition for Hardware Store. According to the quadrants of
risk, this risk of increased competition falls into the category of
A. Strategic risk.
B. Hazard risk.
C. Operational risk.
D. Financial risk. - Answer :A. Strategic risk.
Quiz :Company G is a manufacturer of high profile golf equipment. The risk
management professional for Company G is concerned about loss of business
related to product design. Failing to respond to changing customer demand
and preferences in the design of golf clubs could cost Company G significant
market share. Categorized according to the quadrants of risk, this exposure to
loss would be classified as a(n)
A. Strategic risk.
B. Financial risk.
C. Operational risk.
D. Hazard risk. - Answer :A. Strategic risk.
Quiz :George has received an inheritance and is deciding what to do with the
money. He has limited his options to four choices: donate all the money to his
favorite charity, use the entire inheritance to buy a yacht, invest the
inheritance in a small rental property, or use the entire amount to purchase T-
,bills. Which one of the following statements is true regarding the risk involved
in George's options?
A. Donating his inheritance to charity is a pure risk; there is no uncertainty that
the money wi - Answer :C. The rental property presents both pure and
speculative risk; property values may increase, and the building could burn
down.
Quiz :Risk can be classified as pure or speculative. Which one of the following
is the best example of a speculative risk?
A. Acquiring a new television
B. Investing in shares of stock
C. Buying a new personal vehicle
D. Purchasing an insurance policy - Answer :B. Investing in shares of stock
Quiz :Which one of the following statements is true regarding enterprise risk
management (ERM)?
A. ERM is concerned with an organization's pure risk, primarily hazard risk.
B. The ERM framework encompasses all stakeholders in the organization.
C. In ERM, the risk management function is the responsibility of the safety
manager.
D. ERM requires less communication than traditional risk management. -
Answer :B. The ERM framework encompasses all stakeholders in the
organization.
Quiz :A risk management plan that considers all of the risks that an
organization faces, including operational, financial, and strategic risks, is called
A. An enterprise risk management plan.
B. An open-perils risk management plan.
, C. A protected cell risk management plan.
D. A hazard risk management plan. - Answer :A. An enterprise risk
management plan.
Quiz :The single largest impediment to successful implementation of an
enterprise risk management (ERM) program is
Select one:
A. Traditional organizational culture with entrenched risk silos.
B. Lack of required skills to effectively implement an ERM program.
C. Lack of vision by the management team that leads to under-performance of
the ERM plan and early termination.
D. Opposition from stakeholders—employees, stockholders, customers, and
suppliers. - Answer :A. Traditional organizational culture with entrenched risk
silos.
Quiz :The consensus process by which the veracity of data is confirmed and
verified is known as
Select one:
A. Telematics.
B. Machine learning.
C. The Internet of Things.
D. Mining. - Answer :D. Mining.
Quiz :Which one of the following is a virtual ledger of data that has been
verified, timestamped, encrypted, and protected against tampering?
Select one:
A. Artificial intelligence
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