CPHRM Risk Analysis 5

Question 1

Which of the following BEST describes 'sensitivity analysis' in the context of quantitative risk assessment?

Accepted Answer

Testing how changes in input variables affect the overall risk model output

Answer

Sensitivity analysis varies individual input parameters to determine which variables have the greatest influence on the risk model's results.

Question 2

A hospital risk manager is evaluating two risk reduction options. Option A costs $50,000 and reduces expected losses by $200,000. Option B costs $150,000 and reduces expected losses by $300,000. Based on cost-benefit analysis, which option is preferred?

Accepted Answer

Option A — it has a higher benefit-to-cost ratio (4:1 vs. 2:1)

Answer

Option A yields a 4:1 return ($200k/$50k) versus Option B's 2:1 return ($300k/$150k), making Option A more cost-efficient.

Question 3

In risk analysis terminology, a 'near miss' (or close call) is MOST valuable because it:

Accepted Answer

Provides an opportunity to identify and fix system vulnerabilities before harm occurs

Answer

Near misses reveal hazardous conditions and system gaps with no patient harm, allowing corrective action before an adverse event occurs.

Question 4

Which risk analysis tool uses a structured 'what-if' approach with guide words (e.g., MORE, LESS, NO, OTHER THAN) to identify process deviations and their consequences?

Accepted Answer

HAZOP (Hazard and Operability Study)

Answer

HAZOP uses predefined guide words applied to process parameters to systematically identify deviations that could lead to hazardous outcomes.

Question 5

A risk manager presents a risk analysis report showing that the top five risk categories account for 78% of total organizational loss. This finding is an example of applying which principle?

Accepted Answer

Pareto principle (80/20 rule)

Answer

The Pareto principle holds that a small proportion of causes (roughly 20%) typically accounts for the majority (roughly 80%) of effects or losses.

CPHRM Exam Practice Test

CPHRM Exam Practice Test

CPHRM Risk Analysis 5