Risk Management & Compliance Flashcards
7 cards from real CMP 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 Management & Compliance flashcards as text
A meeting planner discovers that the contracted venue has a history of fire code violations. What is the MOST appropriate immediate action?
Answer: Conduct an independent safety inspection before the event proceeds
An independent safety inspection ensures the planner has verified current compliance before proceeding, fulfilling their duty of care.
Which document formally assigns financial liability for personal injury claims to a third-party vendor at an event?
Answer: Indemnification clause
An indemnification clause in a contract legally transfers liability for specified damages from one party to another.
An international attendee group requires specific dietary accommodations due to religious law. Under which compliance framework does this fall?
Answer: Religious accommodation requirements under Title VII
Title VII of the Civil Rights Act requires employers to reasonably accommodate employees' sincerely held religious practices, which extends to event accommodations.
What is the purpose of a crisis communications plan in event risk management?
Answer: To pre-define spokesperson roles, messaging, and escalation protocols before a crisis
A crisis communications plan establishes who speaks, what to say, and how to escalate before any crisis occurs so response is immediate and consistent.
A planner is evaluating whether to purchase event cancellation insurance. Which factor would MOST increase the need for this coverage?
Answer: A non-refundable venue deposit represents a large percentage of the total budget
Large non-refundable deposits create significant financial exposure that event cancellation insurance is specifically designed to protect against.
When reviewing an attrition clause in a hotel contract, which mitigation strategy is MOST effective?
Answer: Negotiate a graduated attrition percentage with a narrow performance window
Negotiating a graduated attrition percentage allows partial performance without triggering full penalties, balancing risk between planner and venue.
Which of the following BEST describes the principle of 'duty of care' in meeting planning?
Answer: The planner's responsibility to take reasonable steps to protect attendees from foreseeable harm
Duty of care obligates the meeting planner to anticipate and mitigate foreseeable risks to attendees throughout the event.