Control of Risk Practice Test

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• Who hires the independent third-party administrator (TPA) to provide claims services?
• How should risk communications be tailored for different stakeholders?
• Which term describes a risk control technique that attempts to reduce the severity or financial impact of losses that are not prevented?
• How should you document a risk assessment to ensure usability and compliance?
• What term describes an environment where unwelcome sexual conduct unreasonably interferes with an individual's work or creates a hostile, offensive working environment?
• In the context of high-risk operations, what does a safety case provide?
• Which of the following is a leading indicator of risk?
• Maintaining the consistency and performance of vital resources, technology, and infrastructure during and after a disruptive event, and returning to regular operations is called what?
• What term means the number of incidents, accidents, occurrences, or claims in a given time period?
• Which clause is used to cap damages payable in a contract regardless of fault?
• A security technology that allows differing levels of access within an organization
• Which of the following is a lagging indicator?
• The concept of a summary jury trial being non-binding unless agreed to in advance implies what?
• In TCOR, which category is not directly included?
• Which term refers to modifying the work environment or practices to provide equal opportunity for a qualified individual with a disability?
• DART stands for?
• What is a key benefit of tailoring risk communications to stakeholders?
• Which term describes a system that uses a mobile device to send and receive data from vehicles to a server?
• Which security framework requires continuous validation and monitoring of a user's privileges and those associated with their device?
• Which of the following methods are used for identifying hazards in complex processes?
• What concept describes obtaining funds from another who bears some responsibility for or who also has coverage for the claim?
• Which statement best describes the aim of designing for human performance in process safety?
• Why are emergency planning and business continuity important in risk control?
• Which term describes the overall handling of losses and claims by an organization?
• Which term describes the act of intruding into someone’s privacy without permission?
• Which metric gauges recordable injuries that require reporting to safety authorities?
• In risk terminology, which term describes the risk that remains after controls are in place?
• What is the primary objective of risk control within an organization?
• In a Bow-Tie analysis, which component describes the role of preventive and mitigative measures?
• The financial capacity that an organization has for assuming risk
• In security governance, which term denotes a technology that enforces varying access rights based on privilege levels?
• Which term describes the insurer's right to recover from a third party the amount paid on behalf of the insured?
• How does safety culture influence the effectiveness of risk control?
• A meeting of the parties in a forum to encourage a resolution or force a resolution without entering into litigation is known as what?
• What term describes the insurer's right to recover from another responsible party the amount paid to its insured for a covered loss?
• What is a key benefit of maintaining a lessons learned log?
• Which term describes the ongoing plan to restore IT capabilities after a disruption?
• Which term is a demand for payment resulting from a loss?
• Which statement correctly characterizes a quasi-judicial format?
• The one who is owed the obligation from another
• Which term denotes an unexpected and unintentional event that tends to result in damage or injury?
• Which risk control technique involves creating backups or duplicates of critical systems?
• The intrusion upon the privacy and personal information of another by a person or entity, without permission or just cause
• How is the Days Away, Restricted and Transfer Rate (DART) calculated?
• A security layer that requires the user to provide two or more pieces of evidence to be authenticated
• What is the purpose of incident investigation and which method is commonly used?
• Under what conditions should a risk assessment be updated?
• Which sequence best addresses unsafe work practices?
• Which term describes an unplanned event that may lead to a loss or a claim?
• Which term is a prediction of the frequency and severity of losses based on loss history distributions and statistics?
• Which term represents the broad category used to describe both qualitative and quantitative approaches to risk analysis?
• Ergonomics is?
• Which term means the possibility of a positive or negative outcome arising from a given set of circumstances?
• The act or process of managing a crisis to prevent a catastrophic loss, if possible, and reduce the impact on the organization, including its reputation and brand is called what?
• How do you determine if residual risk is ALARP?
• Which term is a quasi-judicial format with abbreviated testimony before a mini-jury?
• An insurance plan in which the insured agrees to reimburse the insurer for a specified amount for each claim
• Why is PPE considered a last line of defense in the hierarchy of controls?
• Which activity is part of robust contractor management?
• What is the role of audits in risk management?
• What is the primary value of using a color-coded risk matrix?
• Which term describes a risk analysis that uses numerical values to predict likelihood and severity?
• A risk control technique that attempts to reduce or prevent loss by transferring some or all of the risk to another organization
• A quasi-judicial format in which abbreviated testimony or evidence is presented and presided over by a mini-jury or magistrate; mini-trial results are generally final.
• Which term describes a quasi-judicial proceeding where abbreviated testimony and evidence is presented and is presided over by a mini-jury or magistrate?
• Which term describes the total value at risk at a single location when protective measures fail, limited only by structure separation?
• What is a “critical control” and how is it used?
• Acquiring funds to pay for losses an organization experiences.
• What term refers to liability established by legislation or regulation?
• Which term describes the loss estimate for a peril expressed as a percentage of total value?
• Which term describes a situation in which the only outcomes are loss or no loss?
• What term describes the failure to act as a reasonably prudent person would under the same set of circumstances?
• Which legal action asks the court to resolve an issue based on the law rather than the facts?
• TRIR formula?
• What is a Safe System of Work (SSOW) and what should it include?
• Which term best describes a state that increases the chance or impact of a loss from a peril?
• The role of a mini-jury or magistrate in a quasi-judicial format is to:
• What term describes the prompt resolution of an organization's losses under an insurance program, including claims by others to which it may be legally bound or ethically responsible?
• What is a risk matrix and how is it typically structured?
• The ability of an organization to perform critical operational tasks during and following a disruptive event is known as what?
• What are leading indicators and lagging indicators in risk monitoring?
• What is a common root cause of repeated incidents and how can it be addressed?
• Which term most accurately describes a plan arranged through an independent TPA?
• Which term describes a condition or circumstance that makes a loss from a given peril more likely or more severe?
• True or False: Summary jury trials are binding on the parties in all cases.
• What term refers to the process of assessing the potential impact exposures may have on an organization?
• A permit-to-work system is primarily used to ensure which of the following before starting high-risk work?
• Which term is the process of assessing the potential impact exposures may have on an organization?
• Which term refers to the entrustment of a dangerous object to someone the owner knew or should have known was not capable of operating it safely?
• What is the purpose of a 'lessons learned' log?
• Which statement is true about risk appetite and risk tolerance?
• Which term describes the process of cataloging exposures, perils, and hazards in order to manage risk?
• A meeting of the parties in a forum to encourage resolution, or force a resolution, without entering into litigation
• How do near-misses differ from incidents, and why are near-misses important?
• What is a set of protocols and instructions for responding to and mitigating a cyber-attack?
• Which sequence correctly represents the five steps of a standard risk assessment process?
• Which term describes a risk control technique that aims to reduce the frequency of claims by breaking the sequence of events?
• Which risk control technique uses back-ups for critical systems to reduce loss severity?
• The isolation of an exposure from other exposures, perils, or hazards
• How often should a risk assessment be reviewed and updated, and under what circumstances?
• Which system uses a mobile device to send and receive data from vehicles to a server?
• The amount of loss expected from a specific peril given some level of impairment or delay in protection. PML is expressed as a percentage of the total values. Unless noted, PML refers to the peril of fire.
• How is risk quantified using likelihood and consequence?
• How do heuristics and cognitive biases affect risk perception and decision making?
• Which term describes a risk analysis that uses qualitative methods to assess risks?
• Why is ongoing monitoring important for risk controls?
• A pre-event agreement to waive the right to seek recovery from a responsible party's insurance carrier for loss payments made to the insured is called what?
• Which term describes a legal action that asks the court to determine the rights of parties under the law, without determining the merits of the underlying dispute?
• Which term describes the ongoing monitoring of the risk management program's policies and procedures?
• The possibility of loss or no loss; however, it also presents the chance of a gain.
• A disabled individual is defined as?
• What is contractor management risk and how can it be mitigated?
• What is RIDDOR and when must incidents be reported?
• Which term describes the implementation of the risk management program's policies and procedures, and the ongoing monitoring of their success?
• In risk assessment documentation, why assign owners and dates to controls?
• Which statement best defines a hazard and a risk in risk management?
• The dollar amount of a single loss, or the total value of all losses in a given time period
• Why are training and competence essential for effective risk control?
• What term describes the transfer of a party's legal claim against a third party to its insurance carrier?
• The spread of exposures or activities over several locations
• How is ALARP justified when further risk reduction would be expensive?
• Which term is defined as any conscious action or inaction to minimize, at the optimal cost, the probability, frequency, severity, or unpredictability of loss?
• Which term is defined as the cause of loss?
• Discriminatory treatment is?
• For which of these would a TPA most likely be engaged?
• Which term describes the reserve for claims that have occurred but not yet been reported (IBNR)?
• What term describes a bilateral agreement protecting the rights of both the insurance carrier and the insured, and the result of both parties discussing that there may be coverage issues?
• Which practice involves isolating an exposure from other exposures?
• What is the purpose of a risk register?
• Hold harmless agreement is?
• In risk management, which statement best describes a hazard?
• Which statement best describes inherent risk versus residual risk?
• After validating a process change, why is post-change monitoring important?
• Which term is a risk control technique that reduces the severity or financial impact of losses that are not prevented?
• Which term means the spread of exposures or activities over several locations?
• When an employee who files a complaint about an employment practice experiences adverse action, this is known as what?
• How can you assess the effectiveness of safety training?
• Which of the following best defines a tort?
• What liability term describes the failure to supervise or regulate the behavior of a person who is a danger to themselves or others?
• Which term refers to resolving disputes without costly litigation, including processes such as mediation and mini-trials?
• Which plan involves a company choosing not to buy insurance and paying claims with internal funding?
• How do audits verify the effectiveness of control measures?
• Which term means eliminating an activity or exposure to remove the chance of a loss?
• Exculpatory agreements are?
• A pre-event limitation of the amount, type, or method of calculation of damages available by one or both parties to an agreement
• Which term denotes a decrease in the value of an asset?
• Which term is a demand for payment or obligation to pay as the result of a loss?
• Define repeatability and reliability in relation to risk controls?
• What does the acronym TPA stand for in the context of insurance plan administration?
• Which components comprise Total Cost of Risk (TCOR)?
• Which term describes a meeting to encourage resolution without litigation?
• Distinguish between qualitative and quantitative risk assessment.
• In a risk matrix, the risk score is obtained by multiplying which two factors?
• The total value at risk at a single location regardless of protective measures. The amount is limited only by adequate separation between structures.
• Which term is the identification and examination of all an organization's exposures, perils, and hazards?
• Which term refers to a situation, practice, or condition that may lead to a loss?
• What constitutes robust contractor management in risk control?
• What does ALARP stand for and how does it guide risk decisions?
• What document signals that a claim may not be covered under a policy and is used to avoid estoppel or waiver arguments?
• Which statement best differentiates hazard identification from risk assessment?
• Provide an example of how a risk assessment informs project decision-making.
• Define tort in the context of civil law.
• Which statement best describes the primary purpose of incident investigation?
• What does Bow-Tie analysis illustrate in risk management?
• Which term best describes an organization's willingness to accept or tolerate risk?
• Which of the following areas is primarily associated with civil wrongs such as those defined here?
• In a typical risk matrix, which two dimensions are used to rate risk?
• Which term describes the instrument sent by an insurer indicating a claim may not be fully covered, used to preserve defenses against estoppel or waiver?
• Which term refers to the monetary value of a single loss or total losses in a given time period?
• What term describes a plan administered by an independent third-party administrator?
• Which term describes a contract where a party agrees to absorb liabilities?
• Compare a hazard and risk assessment with a safety case.
• A plan where the policyholder pays a defined premium to an insurer and does not share in the risk attached to actual claims
• What does the step 'review and monitor' in a risk assessment entail?
• Which term describes the technique of shifting risk to another entity?
• Disparate impact describes?
• Which elements should incident trend analyses include to be useful?
• What is a permit-to-work system and when is it required?
• Which process resolves disputes without litigation by a neutral third party?
• Which plan describes paying a per-claim amount before the insurer pays?
• Which term refers to activities, resources, and assets that may be at risk of loss?
• Why are incident trend analyses useful, and what should they include?
• Which term is the count of events per policy year or calendar year?
• What is the value of considering worst-case scenarios in risk planning?
• Which factors are frequently implicated as root causes of workplace incidents?
• IBNR stands for
• Which liability arises from law or regulation?
• In the context of these definitions, what is summarized as 'abbreviated testimony and/or evidence' ?
• COPE stands for?
• When an audit identifies gaps in a risk management program, what is the typical next step?
• What term describes the failure to supervise or regulate a dangerous person?
• How does change management contribute to risk control?
• Which controls are typically most effective for chemical exposure at the source?
• A Safe System of Work should include which components?
• The theory of liability established by the body of contract law
• What plan means the organization assumes responsibility for claims management and claims data management using internal staff?
• In the hierarchy of controls, which is the most effective control?
• Which term corresponds to an accident without a time constraint?
• What plan involves not purchasing insurance and paying certain claim amounts using 100% internal funding?
• Why is proper documentation essential in risk control?
• The TPA provides claims services and possibly other services that insurance carriers traditionally provide. Which description best fits this role?
• Which visual tool is most closely associated with mapping hazard pathways, barriers, and safeguards?
• How should changes to processes be validated from a risk perspective?
• Which term describes unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature?
• The one who owes the obligation to another
• What role do human factors play in process safety risk?
• Which term refers to a type of risk analysis that uses numerical values to predict likelihood and severity?
• Which base hours are used for normalizing injury metrics such as DART and TRIR?
• Which term refers to an agreement that waives subrogation rights?