Exam (elaborations)
CGFO - FINANCIAL ADMINISTRATION EXAM 2024/2025
- Course
- Institution
CGFO - FINANCIAL ADMINISTRATION EXAM 2024/2025
[Show more]
Content preview
CGFO - FINANCIAL ADMINISTRATIONEXAM 2024/2025
According to GASB 10, list the types of risk - Precise Answer ✔✔Torts
Theft of damage to, or destruction of assets
Business interuption
Errors or omissions
Job-related illnesses or injuries to employees
Acts of God
Any other risk of loss assumed under a policy or participation contract issued by a public entity risk pool
Risk of loss resulting when an entity agrees to provide accident and health, dental, and other medical
benefits to its employees.
What are the two ways to mange risk? - Precise Answer ✔✔Manage an organization's activities to
minimize adverse effects of certain types of losses
Mitigate risk by purchasing insurance.
What are three reasons to manage risk? - Precise Answer ✔✔Create a safe workplace
Prevent financial losses
Provide stability (budget)
What are the three approaches to managing operational and financial risk> - Precise Answer
✔✔Investment portfolio policies (long-term and short-term)
Diversification strategies (spread risk)
Custody of assets (procedures)
What are 7 sources of risk? - Precise Answer ✔✔Physical
Legal
,Operational
Political
Social
Economic
Cognitive (I.T. hack)
What are three tools to minimize risk? - Precise Answer ✔✔Risk transfer - shift the burden to another,
purchase insurance, or risk pool, level premiums for budget
Risk retention - assume risk responsibilities internally
Risk avoidance - Do not provide service
What are the four parts of a Risk Management Program? - Precise Answer ✔✔Risk Identification
Risk evaluation
Risk treatment
Implementation
In the case of Risk Retention, if claims are greater than premiums = (Gain or Loss) - Precise Answer
✔✔Loss
In the case of Risk Retention, if claims are less than premiums = (Gain or Loss) - Precise Answer ✔✔Gain
What is the advantages of Risk Retention? - Precise Answer ✔✔Lower premiums
Align incentives
Create a safer work environment
What are the advantages of participating in a Risk Pool? - Precise Answer ✔✔Vehicle for government to
pool funds.
Affordable cost through economies of scale
Provide services to reduce risk
, Risk Pool - Premium = - Precise Answer ✔✔Revenue
Define IBNR - Precise Answer ✔✔Incurred but not reported claims
When is IBNR recorded? - Precise Answer ✔✔Record when event triggers coverage under policy
What amount is IBNR recorded? - Precise Answer ✔✔Amount based on estimate to settle claim.
How is IBNR recorded? - Precise Answer ✔✔As an accrual based on probable loss that can be reasonably
estimated, recoreded as an expense/liability.
How do we minimize risk? - Precise Answer ✔✔Provide safety in the workplace
Inspect buildings
Install extinquishers, sprinklers, smoke detectors
Training
What three areas should we monitor for risks? - Precise Answer ✔✔One-time projects
Geography (example: stormwater)
Unique Services
What should a Risk Management Committee accomplish? - Precise Answer ✔✔Create a Risk
Management policy
Develop inspection programs
Design safety
Create claims investigation system
Identify safety measures
Develop disciplinary procedures
Establish review boards
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YANCHY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now