CPHRM Loss Prevention 4 — Questions and Answers
Question 1: A risk manager is evaluating the financial impact of retaining risk versus purchasing insurance. This analysis is BEST described as:
- Claims reserving
- Actuarial risk analysis
- Cost-benefit analysis of risk financing (Correct answer)
- Underwriting review
Correct answer: Cost-benefit analysis of risk financing
Comparing the costs of self-retention against insurance premiums and coverage is a cost-benefit analysis within risk financing decision-making.
Question 2: Which of the following BEST defines 'claims-made' insurance coverage?
- Coverage for incidents that occurred and are reported during the policy period (Correct answer)
- Coverage for any claim regardless of when filed
- Coverage only for previously settled claims
- Coverage tied to the claimant's date of discovery
Correct answer: Coverage for incidents that occurred and are reported during the policy period
A claims-made policy provides coverage only if the incident occurred and the claim is reported while the policy is in force.
Question 3: Which legal doctrine holds hospitals responsible for the negligent acts of their employed physicians?
- Corporate negligence
- Respondeat superior (Correct answer)
- Res ipsa loquitur
- Contributory negligence
Correct answer: Respondeat superior
Respondeat superior ('let the master answer') holds employers vicariously liable for the negligent acts of employees acting within the scope of their employment.
Question 4: What is the primary purpose of a healthcare organization's risk register?
- To track employee complaints
- To document and prioritize identified risks across the organization (Correct answer)
- To record insurance policy details
- To log regulatory inspections
Correct answer: To document and prioritize identified risks across the organization
A risk register is a centralized tool that documents identified risks, their likelihood, potential impact, and mitigation strategies.
Question 5: Which action BEST reduces the risk of patient elopement in a psychiatric facility?
- Locking all facility exits at all times
- Implementing a structured risk assessment at admission and ongoing monitoring (Correct answer)
- Restricting all patient visitation
- Reducing nursing staff ratios
Correct answer: Implementing a structured risk assessment at admission and ongoing monitoring
Structured elopement risk assessment at admission, with regular reassessment, guides targeted interventions to prevent unauthorized patient departure.
Question 6: A hospital is sued for negligent credentialing of a physician. This claim is based on the doctrine of:
- Respondeat superior
- Res ipsa loquitur
- Corporate negligence (Correct answer)
- Comparative fault
Correct answer: Corporate negligence
Corporate negligence holds the hospital directly liable for failing to fulfill its duty to properly credential and supervise medical staff.
Question 7: Which type of hazard analysis is used to evaluate the safety of a new clinical process before it is implemented?
- Retrospective claims review
- Proactive hazard analysis (e.g., FMEA) (Correct answer)
- Root cause analysis
- Incident trend analysis
Correct answer: Proactive hazard analysis (e.g., FMEA)
Proactive hazard analysis such as FMEA is applied to new or redesigned processes to identify failure modes before the process goes live.
CPHRM Loss Prevention 4
A risk manager is evaluating the financial impact of retaining risk versus purchasing insurance.
This analysis is BEST described as: