CGFO - FINANCIAL ADMINISTRATION QUESTIONS WITH 100% CORRECT SOLUTIONS |
GUARANTEED SUCCESS.
According to GASB 10, list the types of risk - (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? - (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? - (answer)Create a safe workplace
Prevent financial losses
Provide stability (budget)
What are the three approaches to managing operational and financial risk> - (answer)Investment
portfolio policies (long-term and short-term)
Diversification strategies (spread risk)
Custody of assets (procedures)
What are 7 sources of risk? - (answer)Physical
Legal
Operational
Political
Social
,CGFO - FINANCIAL ADMINISTRATION QUESTIONS WITH 100% CORRECT SOLUTIONS |
GUARANTEED SUCCESS.
Economic
Cognitive (I.T. hack)
What are three tools to minimize risk? - (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? - (answer)Risk Identification
Risk evaluation
Risk treatment
Implementation
In the case of Risk Retention, if claims are greater than premiums = (Gain or Loss) - (answer)Loss
In the case of Risk Retention, if claims are less than premiums = (Gain or Loss) - (answer)Gain
What is the advantages of Risk Retention? - (answer)Lower premiums
Align incentives
Create a safer work environment
What are the advantages of participating in a Risk Pool? - (answer)Vehicle for government to pool funds.
Affordable cost through economies of scale
Provide services to reduce risk
Risk Pool - Premium = - (answer)Revenue
, CGFO - FINANCIAL ADMINISTRATION QUESTIONS WITH 100% CORRECT SOLUTIONS |
GUARANTEED SUCCESS.
Define IBNR - (answer)Incurred but not reported claims
When is IBNR recorded? - (answer)Record when event triggers coverage under policy
What amount is IBNR recorded? - (answer)Amount based on estimate to settle claim.
How is IBNR recorded? - (answer)As an accrual based on probable loss that can be reasonably
estimated, recoreded as an expense/liability.
How do we minimize risk? - (answer)Provide safety in the workplace
Inspect buildings
Install extinquishers, sprinklers, smoke detectors
Training
What three areas should we monitor for risks? - (answer)One-time projects
Geography (example: stormwater)
Unique Services
What should a Risk Management Committee accomplish? - (answer)Create a Risk Management policy
Develop inspection programs
Design safety
Create claims investigation system
Identify safety measures
Develop disciplinary procedures
Establish review boards
Why have a Risk Management Committee? - (answer)Get staff involved
GUARANTEED SUCCESS.
According to GASB 10, list the types of risk - (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? - (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? - (answer)Create a safe workplace
Prevent financial losses
Provide stability (budget)
What are the three approaches to managing operational and financial risk> - (answer)Investment
portfolio policies (long-term and short-term)
Diversification strategies (spread risk)
Custody of assets (procedures)
What are 7 sources of risk? - (answer)Physical
Legal
Operational
Political
Social
,CGFO - FINANCIAL ADMINISTRATION QUESTIONS WITH 100% CORRECT SOLUTIONS |
GUARANTEED SUCCESS.
Economic
Cognitive (I.T. hack)
What are three tools to minimize risk? - (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? - (answer)Risk Identification
Risk evaluation
Risk treatment
Implementation
In the case of Risk Retention, if claims are greater than premiums = (Gain or Loss) - (answer)Loss
In the case of Risk Retention, if claims are less than premiums = (Gain or Loss) - (answer)Gain
What is the advantages of Risk Retention? - (answer)Lower premiums
Align incentives
Create a safer work environment
What are the advantages of participating in a Risk Pool? - (answer)Vehicle for government to pool funds.
Affordable cost through economies of scale
Provide services to reduce risk
Risk Pool - Premium = - (answer)Revenue
, CGFO - FINANCIAL ADMINISTRATION QUESTIONS WITH 100% CORRECT SOLUTIONS |
GUARANTEED SUCCESS.
Define IBNR - (answer)Incurred but not reported claims
When is IBNR recorded? - (answer)Record when event triggers coverage under policy
What amount is IBNR recorded? - (answer)Amount based on estimate to settle claim.
How is IBNR recorded? - (answer)As an accrual based on probable loss that can be reasonably
estimated, recoreded as an expense/liability.
How do we minimize risk? - (answer)Provide safety in the workplace
Inspect buildings
Install extinquishers, sprinklers, smoke detectors
Training
What three areas should we monitor for risks? - (answer)One-time projects
Geography (example: stormwater)
Unique Services
What should a Risk Management Committee accomplish? - (answer)Create a Risk Management policy
Develop inspection programs
Design safety
Create claims investigation system
Identify safety measures
Develop disciplinary procedures
Establish review boards
Why have a Risk Management Committee? - (answer)Get staff involved
