CPHRM Risk Analysis 5 — Questions and Answers
Question 1: Which of the following BEST describes 'sensitivity analysis' in the context of quantitative risk assessment?
- Assessing patient sensitivity to medications as a risk factor
- Measuring the detection threshold of control systems
- Evaluating staff sensitivity to workplace safety concerns
- Testing how changes in input variables affect the overall risk model output (Correct answer)
Correct answer: Testing how changes in input variables affect the overall risk model output
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?
- Option B — it has a higher absolute loss reduction
- Option A — it has a higher benefit-to-cost ratio (4:1 vs. 2:1) (Correct answer)
- Both are equivalent because the net benefit is the same
- Neither — costs always outweigh benefits in risk mitigation
Correct answer: Option A — it has a higher benefit-to-cost ratio (4:1 vs. 2:1)
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:
- Triggers mandatory regulatory reporting in all states
- Provides an opportunity to identify and fix system vulnerabilities before harm occurs (Correct answer)
- Establishes liability for the clinician involved
- Generates data for malpractice actuarial tables
Correct answer: Provides an opportunity to identify and fix system vulnerabilities before harm occurs
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?
- HAZOP (Hazard and Operability Study) (Correct answer)
- FMEA
- Root Cause Analysis
- Fault tree analysis
Correct answer: HAZOP (Hazard and Operability Study)
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?
- Law of large numbers
- Pareto principle (80/20 rule) (Correct answer)
- Normal distribution assumption
- Regression to the mean
Correct answer: Pareto principle (80/20 rule)
The Pareto principle holds that a small proportion of causes (roughly 20%) typically accounts for the majority (roughly 80%) of effects or losses.
Question 6: When a healthcare organization uses 'benchmarking' as part of its risk analysis process, it is primarily attempting to:
- Satisfy Joint Commission reporting requirements
- Set internal financial reserves for anticipated losses
- Compare its risk performance metrics against industry standards or peer organizations (Correct answer)
- Rank individual clinicians by malpractice exposure
Correct answer: Compare its risk performance metrics against industry standards or peer organizations
Benchmarking compares an organization's risk indicators against external standards or peer data to identify gaps and performance improvement opportunities.
Question 7: Which of the following is an example of a 'leading indicator' in healthcare risk analysis?
- Number of malpractice claims filed last year
- Rate of safety culture survey scores indicating poor communication (Correct answer)
- Total adverse event count for the prior quarter
- Workers' compensation costs over the past 12 months
Correct answer: Rate of safety culture survey scores indicating poor communication
Leading indicators measure conditions or behaviors that predict future adverse events, enabling proactive intervention before harm occurs.
CPHRM Risk Analysis 5
Which of the following BEST describes 'sensitivity analysis' in the context of quantitative risk assessment?