CPCU 500 EXAM 3 Questions & Answers
To accurately determine its level of risk, an organization must examine the effectiveness of its efforts to prevent losses from occurring and to reduce the severity of losses that do occur. An organization's efforts in this area are called
Risk control
A...
CPCU 500 EXAM 3 Questions & Answers
To accurately determine its level of risk, an organization must examine the effectiveness
of its efforts to prevent losses from occurring and to reduce the severity of losses that
do occur. An organization's efforts in this area are called - answer Risk control
After a month in which three employees were seriously injured at company paper mills,
Ashley, the risk manager of Bright White Paper Company, wanted some answers about
the causes of employee injuries. Ashley independently contacted the plant manager and
foreman at each of the company's plants. She asked each person to complete a
confidential questionnaire regarding safety procedures. After receiving the responses to
the questionnaire, Ashley summarized the results and asked the same questions again
instructing each person to consider revising their responses based on the initial
questionnaire results. The analysis revealed that new workers were not being properly
trained and that a lax attitude toward safety was present at the majority of the plants.
The team approach to risk identification Ashley employed is called - answer The
Delphi technique.
SoCal Movie Company produces movies at a studio in Southern California. The risk
manager decided to identify the range of potential consequences associated with
various risks that the company faces. For example, if a severe earthquake occurred
while the company was filming a movie, there could be deaths and injuries, destruction
of movie sets, delays in production, costs associated with filming at an alternative
location, and loss of reputation and good will. The type of analysis performed by the risk
manager is called - answer Scenario analysis.
The use of risk quadrants to identify and categorize risk can provide a framework for
risk identification. One quadrant includes such risks as loss of production due to a key
supplier not delivering raw materials or a mechanical breakdown of equipment. This risk
quadrant is - answer Operational risk.
East Side Fitness has decided to merge with a yoga studio with two locations near-by.
The owners believe that with this complimentary business, they will be able to increase
the membership fees for current members and also grow the overall membership.
Which one of the following quadrants of risk will be most influenced by this decision? -
answer Strategic risk
SE Industries has identified windstorm as a risk. The risk manager has assembled a
team to project the potential consequences of windstorm. The team includes individuals
from various functions within the organization. Which one of the following team
approaches to risk identification is SE Industries using? - answer Scenario analysis
After one employee was involved in several workplace accidents, the risk manager and
the industrial safety engineer concluded that these resulted from ancestry and social
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