Risk Assessment and Management Flashcards
7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment and Management flashcards as text
Which regulatory requirement mandates that apartment communities disclose the presence of lead-based paint to prospective residents in pre-1978 buildings?
Answer: The Residential Lead-Based Paint Hazard Reduction Act
The Residential Lead-Based Paint Hazard Reduction Act requires disclosure of known lead paint hazards in housing built before 1978.
A resident slips on ice in the parking lot and threatens to sue. Which documentation would be MOST valuable in the property's defense?
Answer: Dated records showing ice treatment was applied before the incident
Contemporaneous records of ice treatment demonstrate that the property took reasonable steps to prevent the hazard.
What is the concept of 'risk retention' in property management?
Answer: Accepting a known level of risk rather than transferring it to an insurer
Risk retention means the property owner consciously accepts certain losses (e.g., via a deductible or self-insurance) as more cost-effective than full transfer.
A fire suppression system inspection reveals a defective sprinkler head in a unit. How should the property manager proceed under sound risk management?
Answer: Repair it immediately and document the work, keeping inspection reports on file
Fire suppression deficiencies are life-safety issues requiring immediate repair and thorough documentation.
Which practice BEST reduces the risk of employee theft or embezzlement in property management financial operations?
Answer: Implementing separation of duties so no single employee controls all financial functions
Separation of duties ensures that no single person has unchecked access to collect, record, and disburse funds, which is the primary internal control against embezzlement.
When evaluating a vendor contract, which provision helps reduce the property owner's liability if the vendor's employee is injured on-site?
Answer: Indemnification and hold harmless clause
An indemnification and hold harmless clause in the vendor contract requires the vendor to absorb liability for injuries to their own employees on the property.
A CAM manager is updating the property's emergency contact tree after staff turnover. This activity is part of which risk management component?
Answer: Business continuity planning
Maintaining an updated emergency contact tree is a core element of business continuity planning to ensure operations can continue during disruptions.