Corporate Risk Management Test 3 Study Guide

Materials accounting

a physical inventory of an organization's materials to ensure that all materials released or losses have been identified

population at risk

a population living within the existing or potential areas of contamination

Compliance audit

a procedure to identify and analyze existing and potential compliance problems.

source reduction

a procedure to reduce pollutants that emanate from an already existing source.

Retention

a risk financing technique by which losses are retained by generation funds within the organization to pay for the losses

Perimeter system

a type of burglar alarm system that is designed to signal an alarm whenever unauthorized entry is made into the building

22. List and describe three types of computer crime.

a. 1. Computer Sabotage: include striking computer components with heaving objects, spilling solutions on circuit wires, introducing foreign matter into a computer's parts, or deliberately manipulating data to render the program unreliable b. 2. Theft through hacking: typically stealing data to learn trade secrets or financial strategy c. 3. Theft of computer time: Unauthorized use by employees of computer time for personal purposes

8. What are the three steps to identifying environmental loss exposures?

a. 1. Identify what materials are present, the quantities of those materials, and the potentially harmful properties of the materials at the locations in question. b. 2. Identify the potential routes those materials could take if they were released from or within the facility. c. 3. Identify the target populations of living entities that could be affected if the materials followed the potential routes.

16. List and describe two types of climate change risk.

a. 1. Physical Risks - Increasing frequency and severity of major storm events, such as hurricanes, in areas of significant population growth may dramatically increase losses by damaging property and interrupting transportation, power supplies, and distribution chains and by causing injury or death to employees b. 2. Competition Risks - An organization's ability to compete may be compromised by its failure to address climate change risks. Organizations that establish effective policies to deal with climate change exposures will have the competitive advantage among customers and interest groups that are concerned about environmental issues.

27. What is materials accounting?

A physical inventory of an organization's materials to ensure that all material releases or losses have been identified

source treatment

A procedure to modify the pollutants that have already been produced.

Embezzlement

The fraudulent taking of money or other personal property by one to whom the property has been entrusted

Shoplifting

The removal of merchandise from a store by stealth without purchasing it

18. What are the five phases of an organization's fleet life cycle?

1. Conceptual Phase 2. Engineering Phase 3. Production Phase 4. Operational Phase 5. Disposal Phase

20. What are the five categories of crime risk control measures?

1. Sound personnel policies 2. Physical controls 3. Procedural controls 4. Managerial controls 5. Investigation and prosecution of crimes

3. Explain how advances in technology have impacted environmental loss exposures.

As detection equipment is developed that can measure smaller quantities of contaminates, the loss exposure increases. (Page 9.17)

Biometrics

Biological identification of an individual using anatomy or physiology

Ch 10 vocab

Ch 10 vocab

Ch 9 Vocab

Ch 9 vocab

28. What makes reducing frequency and severity of crime losses different from other types of property loss exposures?

Crime losses are intentional

17. Explain how E&O and D&O apply to environmental and cyber risk exposures?

D and O is related to environmental exposures and E and O is related to cyber exposers

1. Explain how hold-harmless agreements help protect against cyber risk.

It's a type of noninsurance measure that organizations can use to receive reimbursement for cyber risk losses or to transfer their cyber risk loss exposures

7. What types of materials do typical insuring agreements of environmental policies cover?

Environmental insurance policies refer in their insuring agreement to cleanup cost obligations imposed on the insured by environmental laws. If the insured has loss exposures from unregulated materials, it is important to amend the environments insurance policy to insure the loss exposures

FMCSA

Federal motor carrier safety administration works with law enforcement and the motor carrier industry to administer the FMCSR

13. What is NEPA and what is its significance?

National Environment Policy Act, since NEPA was passed, environmental laws to protect human health and the environment has proliferated, beginning with laws to protect surface waters and the air.

Solidification, stabilization, and encapsulation process

Processes that use additives to reduce the mobility of pollutants so that the waste meets land disposal requirements

14. How do vandalism and terrorism differ?

Terrorists have underlying political agendas and are attempted to incite fear where vandalism is just destruction of property .

Robbery

The act of taking tangible personal property from another person by force or by threat of force against that person or another

2. What does it mean that Superfund liability is joint and several?

This means any liable party may be responsible for the entire amount, regardless of its fair share, if, as is usually the case, the harm is indivisible.

4. What is the purpose of CERLCL?

To facilitate the cleanup of any abandoned or uncontrolled sites containing hazardous substances; imposes strict liability for cleanup costs on potentially responsible parties

Vandalism

Willful and malicious damage to or destruction of property

Cargo

a broad term that encompasses both freight and passengers

Inherent vice

a condition that can cause property to deteriorate or destroy itself

Hold-harmless agreement (indemnity agreement)

a contractual provision that obligates one of the parties to assume the legal liability of another party

Computer crime

a criminal act using a computer to gain authorized or unauthorized to steal, interrupt, or misuse computer system information

defamation

a false written or oral statement that harms another's reputation

Counterfeiting

a form of forgery that involves privately duplication a country's currency or presenting it as genuine with knowledge that it is not

11. In addition to liability loss exposures, what are the other three types of loss exposures? Provide an example of each

a. 1. Property Loss Exposures i. Ex: environmental pollution may prevent an organization from selling a piece of property b. 2. Personnel Loss Exposures i. Ex: Many work-environment contaminants have a cumulative effect on the human body that results in illness or disease c. 3. Net Income Loss Exposures i. Ex: A spill or a leak within a facility may shut down a manufacturing line or an area for repairs and cleanup.

12. Give three examples of guidelines that organizations can use to manage social media risk.

a. 1. Work-related posts should maintain a professional tone. b. 2. Any material posted should be accurate. c. 3. Customers' privacy should be protected.

24. What is a PRP and who can be included as a PRP?

a. A PRP (Potentially Responsible Party) are the persons or entities that are legally responsible for the costs of remediating the Superfund site. b. Who's included: i. The current owners and operators of a site (even if they have no involvement with waste) ii. Prior owners and operators who may or may not have been involved with the site during the disposal of hazardous materials iii. The generators of the waste materials disposed of at the site iv. The transporters who hauled the waste to the site v. Anyone who arranged for the disposal of materials at the site

30. What are some of the steps to the new-driver hiring decision?

a. Application Review b. Interview c. Motor Vehicle Review and Reference Checks d. Drug Test and Physical Exam e. Road Test f. HIRE g. 3-day Training h. Probationary Period

5. How do burglary and robbery differ?

a. Burglary is the act of breaking into or our of any closed building or space not open or business to commit another felony whereas Robbery is the act of taking personal property from another person by force or by threat of force against that person

15. How can a cyber loss result in bodily injury liability?

a. Ex: misinformation obtained from an organization's website; some organizations do not exercise the same degree of care in monitoring information published on their online sites as they do with information published using traditional methods. b. Ex: If an individual obtains information from a superstore retailer's website regarding common home health care treatment tips, but the information incorrectly states an important step and causes injury. The individual could sue.

26. What two factors does the motor vehicle record criteria matrix consider and what is the matrix used for?

a. Factors: Number of at fault accidents & Number of moving violations b. Help determine acceptable MVRs for hiring drivers and for employment continuation

9. What are foot pedal alarms and central station alarms?

a. Foot pedal alarm: Alarms that are triggered by buttons or foot pedals can be situated so that a bank teller or store clerk, for example, can send a silent alarm to a central location or to the police while a crime is in progress. b. Central station alarm: Some systems are connected to and constantly monitored at an alarm company central station. When the alarm sounds at the central station, a guard is sent to the alarm transmission site and police are notified.

10. Provide an example of negligence, intentional torts, strict liability, and contract liability with respect to environmental risk.

a. Negligence: A contractor working at a manufacturing facility left a valve open on a process line overnight, causing the contents of a storage tank connected to the line to be released into an adjacent stream, which in turn caused property damage, bodily injury, and natural resource damage. b. Intentional Torts: nuisance and trespass c. Strict liability: Ex. A remediation contractor working on a job to incinerate nerve gas could face strict liability for ultra-hazardous activities if a release of the nerve gas injures a third party, even though the contractor might exercise a very high degree of care d. Contractual liability: Ex. A general contractor that agrees to indemnify a project owner for all claims made against the owner during the course of the project may incur an environmental loss under contract if the proximate cause of the loss is a release of pollutants. Then, a worker who is employed by a subcontractor at the project and is injured as a result of breathing ammonia might then sue the project owner. Thus, the activating the general contractor's contractual liability to the owner.

23. Under what conditions can employees who perform safety-sensitive functions be alcohol tested?

a. Pre-employment b. Random c. Reasonable suspicion/reasonable cause d. Post-accident e. Return-to-duty f. Follow-up

29. Define source reduction, source treatment and disposal and give an example of each.

a. Source reduction: A procedure to reduce pollutants that emanate from an already existing source Ex: b. Source treatment: A procedure to modify the pollutants that have already been produced Ex: c. Disposal: Process that improves waste handling characteristics Ex:

21. Describe two technological advances in fleet safety that help organizations manage fleet risk.

a. Stability control systems- sense when a vehicle is traveling too fast in a curve and automatically apply the vehicle's brakes b. Rear-mounted video cameras- provide the operator with a better vision of what is happening behind the vehicle

19. What factors impact the driving time limits that an operator may drive a CMV?

a. following a minimum ten hour off duty break, the driver may only drive for an 11 hour period. b. after every eight hours of on-duty time, the driver must take a minimum 30-minute rest break c. the driver must not drive a CMV during these breaks. d. The driver may not drive beyond the fourteenth consecutive hour after starting an on-duty period that follows a minimum ten-hour off-duty break

FMCSR

federal motor carrier safety regulations put in place to monitor promote and ensure safety related to motor carrier

6. How does the cargo being transported relate to other transportation considerations?

a. suitable to vehicle - a specific cargo is suitable for a particular vehicle only if the vehicle poses no unreasonable risk to the cargo and no unreasonable risk to the vehicle b. Proper Loading - if loading is not closely monitored the potential to overload or not properly secure cargo can become a serious issue c. Sustainability of Routes- an organization should select a motor vehicle route only if it presents no unreasonable risks to the cargo and presents no unreasonable risk to the properties or persons along the route or in the surrounding environments d. Safeguards aginst inherent vice- the vehicle must provide an appropriate environment for the cargo e. Routes - some routes are naturally safer than others for almost any vehicle or cargo f. Vehicle Schedules- a sound safety-oriented vehicle schedule provides enough time for vehicle drivers to complete their trips on schedule without rushing and schedule conflicts. A driver's schedule should allow flexibility to deal with unforeseen events

25. What are the two ways that investigating and pursuing prosecution of criminals reduces crime losses?

a. they can increase their opportunities to recover stolen property or to receive repayment or compensation from the criminals. b. they can establish a reputation for being tough on crime, discouraging criminals from targeting that organization

denial-of-service attack

an attempt to overwhelm a computer system or network with excessive communications in order to deny users access

Fraud

an intentional misrepresentation resulting in harm to a person or an organization

FMCSR defines an accident as

an occurrence that involves a CMV that has a fatality, bodily injury to a person who immediately receives medical treatment for the injury away from the scene of the accident, or one or more motor vehicles that incur disabling damage as a result and which requires the disabled vehicle to be transported from the scene by a tow truck or other motor vehicle

Ch 11 vocab (key words in chapter)

ch 11 vocab (key words in chapter)

CDL

commercial drivers license

CMV

commercial motor vehicle

CSA initiative

compliance, safety, and accountability

physical environment

encompasses the highways, weather conditions, terrain, communities, and other tangible objects and forces that vehicles in the fleet encounter

Burglary

the act of breaking into or out of any closed building or space not open for business to commit another felony

Espionage

the act of obtaining confidential info through personal observation or mechanical, digital, or electronic techniques that circumvent efforts to protect the info's confidentiality

Computer sabotage

the deliberate and hostile destruction of hardware or software or the disruption of productive processes

Arson

the deliberate setting of fire to property for a fraudulent or malicious purpose