CPWM Regulatory Compliance & Risk Management 4 — Questions and Answers
Question 1: Under Title VI of the Civil Rights Act, public works agencies receiving federal financial assistance must ensure that programs do not discriminate based on which criteria?
- Age, income, and disability
- Race, color, and national origin (Correct answer)
- Gender, religion, and political affiliation
- Education level and employment status
Correct answer: Race, color, and national origin
Title VI prohibits discrimination based on race, color, and national origin in programs and activities receiving federal financial assistance.
Question 2: A public works agency that self-insures for liability must maintain which type of reserve to cover potential claims?
- Contingency fund
- Capital improvement fund
- Loss reserve or risk retention fund (Correct answer)
- General obligation bond reserve
Correct answer: Loss reserve or risk retention fund
Self-insured agencies must maintain a loss reserve or risk retention fund with sufficient resources to pay anticipated claims without purchasing commercial insurance.
Question 3: Which regulation requires that public agencies assess the environmental impact of major federal actions significantly affecting the quality of the human environment?
- Clean Air Act Section 176(c)
- National Environmental Policy Act (NEPA) (Correct answer)
- Resource Conservation and Recovery Act
- Endangered Species Act Section 7
Correct answer: National Environmental Policy Act (NEPA)
NEPA requires federal agencies to assess environmental impacts through Environmental Assessments (EAs) or Environmental Impact Statements (EISs) for major federal actions.
Question 4: A public works contractor fails to follow a municipality's right-of-way excavation ordinance, causing a gas line strike. Under tort liability, the municipality may be held liable under which doctrine if it failed to supervise?
- Respondeat superior (Correct answer)
- Sovereign immunity
- Comparative negligence
- Assumption of risk
Correct answer: Respondeat superior
Respondeat superior holds an employer vicariously liable for the negligent acts of employees or agents acting within the scope of their duties.
Question 5: Which phase of the risk management process involves developing options and actions to enhance opportunities and reduce threats to project objectives?
- Risk identification
- Risk analysis
- Risk response planning (Correct answer)
- Risk monitoring and control
Correct answer: Risk response planning
Risk response planning develops strategies such as avoidance, mitigation, transfer, or acceptance to address identified risks and enhance opportunities.
Question 6: The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) holds which parties liable for hazardous substance cleanup costs?
- Only the party that caused the contamination
- Current and past property owners, operators, generators, and transporters (Correct answer)
- Only the federal government
- Only parties with environmental insurance
Correct answer: Current and past property owners, operators, generators, and transporters
CERCLA imposes joint and several liability on current owners/operators, past owners/operators at the time of disposal, generators, and transporters of hazardous substances.
Question 7: A public works director wants to reduce the agency's exposure to workers' compensation claims. Which proactive risk control strategy is MOST effective?
- Increasing deductible amounts on insurance policies
- Implementing a robust safety training and incident prevention program (Correct answer)
- Transferring all risk to contractors through indemnification clauses
- Purchasing excess liability insurance coverage
Correct answer: Implementing a robust safety training and incident prevention program
Proactive safety training and incident prevention programs reduce the frequency and severity of workplace injuries, directly lowering workers' compensation exposure.
CPWM Regulatory Compliance & Risk Management 4
Under Title VI of the Civil Rights Act, public works agencies receiving federal financial assistance must ensure that programs do not discriminate based on which criteria?