CPHRM Enterprise Risk Management Flashcards
6 cards from real CPHRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPHRM Enterprise Risk Management flashcards as text
Which framework is most commonly referenced in healthcare enterprise risk management (ERM) programs in the US?
Answer: COSO ERM Framework
The COSO ERM Framework is the most widely adopted standard for enterprise risk management in US healthcare organizations.
In ERM, what does the term 'risk appetite' refer to?
Answer: The amount of risk an organization is willing to accept in pursuit of its objectives
Risk appetite is the amount and type of risk an organization is willing to accept while pursuing its strategic objectives.
Which of the following best describes 'residual risk' in an ERM program?
Answer: Risk that remains after controls and mitigation strategies are applied
Residual risk is the level of risk remaining after an organization has implemented its risk response and control measures.
A healthcare risk manager is creating a risk register. Which component is essential for each identified risk entry?
Answer: Likelihood, impact, and assigned owner
A risk register entry must include the likelihood of occurrence, potential impact, and an assigned owner responsible for managing that risk.
Which ERM risk response strategy involves shifting the financial consequence of a risk to a third party?
Answer: Risk transfer
Risk transfer shifts the financial burden of a risk to another party, most commonly through insurance or contractual agreements.
In a healthcare ERM program, 'strategic risk' most likely includes which of the following?
Answer: A competitor opening a new facility in the service area
Strategic risk involves threats to an organization's ability to achieve its long-term goals, such as competitive market changes.