CPCU 500 Practice Exam - Assignment 1 100% Correct Answers Verified | Latest 2024 Version

The risk of increased competition falls into the category of which quadrant of risk - Strategic Risk Failing to respond to changing customer demand and preferences in the design could drop the market share. Which quadrants of risk is this? - Strategic risk, arise from trends in the economy and society If car is stolen and the tracking device can be used to recover the car more quickly. Which RM technique is this? - Loss reduction How traditional RM works - Silo approach Cost of risk of opening a new facility? - Safety System upgrades insurance prems retained losses RM budget Which one of the following statements is true regarding risk management efforts on the part of individuals, organizations, and society in general - Risk management makes those who own or run an organization more willing to undertake risky activities. Tolerable Uncertainty - aligning risks with the organization's risk appetiteAn organization must meet the standard of care that it owes to others in order to ensure that - Legal obligations are satisfied. Which one of the following is essential to an effective risk management program? - Support of the organization's senior management The cost of a risk management technique can be determined through a - cost-benefit analysis that considers the technique's effect on the frequency, severity, and timing of expected losses relative to an estimate of the after-tax costs involved in applying the various risk management techniques. A new computer chip that could position a company for explosive growth is an example of - Strategic risk. Which one of the following is usually the single largest impediment to successful implementation of enterprise risk management (ERM) - The traditional organizational culture Traditional organizational culture with entrenched risk silos often makes implementation of an ERM program difficult. The use of data gleaned from sensors to react immediately to hazardous situations is known as - Real-time risk management Which one of the following products has led to significant improvements in supply chain management by allowing for the immediate identification of discrepancies and interruptions as well as timely actions that can prevent or reduce losses? - Closed-loop system Which one of the following costs is part of the overall financial consequences of risk? - The cost of the value lost due to events that caused a loss Sean recently started a small consulting practice. Sean is the only employee of the business and the sole generator of revenue. Sean is very concerned that in the event that he becomes disabled due to an accident or disease there will be no revenue coming into the business. Which one of the following goals best identify Sean's concerns? - Tolerable uncertainty and earnings stability