CPHRM CPHRM Enterprise Risk Management 1

Question 1

Which framework is most commonly referenced in healthcare enterprise risk management (ERM) programs in the US?

Accepted Answer

COSO ERM Framework

Answer

The COSO ERM Framework is the most widely adopted standard for enterprise risk management in US healthcare organizations.

Question 2

In ERM, what does the term 'risk appetite' refer to?

Accepted Answer

The amount of risk an organization is willing to accept in pursuit of its objectives

Answer

Risk appetite is the amount and type of risk an organization is willing to accept while pursuing its strategic objectives.

Question 3

Which of the following best describes 'residual risk' in an ERM program?

Accepted Answer

Risk that remains after controls and mitigation strategies are applied

Answer

Residual risk is the level of risk remaining after an organization has implemented its risk response and control measures.

Question 4

A healthcare risk manager is creating a risk register. Which component is essential for each identified risk entry?

Accepted Answer

Likelihood, impact, and assigned owner

Answer

A risk register entry must include the likelihood of occurrence, potential impact, and an assigned owner responsible for managing that risk.

Question 5

Which ERM risk response strategy involves shifting the financial consequence of a risk to a third party?

Accepted Answer

Risk transfer

Answer

Risk transfer shifts the financial burden of a risk to another party, most commonly through insurance or contractual agreements.

CPHRM Exam Practice Test