Risk Assessment and Management Flashcards

A property manager discovers black mold in three apartment units after a pipe burst. What is the FIRST priority action?

Answer: Relocate affected residents immediately and begin remediation

Resident safety is the top priority, requiring immediate relocation before remediation begins.

Which type of insurance covers property damage caused by a tenant's negligence?

Answer: Tenant's renter's insurance

Renter's insurance (tenant's personal liability policy) covers damage the tenant causes to the property.

When conducting a slip-and-fall risk assessment in a parking lot, which hazard should be prioritized during winter months?

Answer: Ice and snow accumulation on walkways

Ice and snow accumulation is the most acute and immediate slip-and-fall hazard in winter conditions.

A CAM manager is reviewing the property's risk register. What does a 'high likelihood, high severity' risk classification require?

Answer: Immediate mitigation or control measures

Risks rated high on both likelihood and severity demand immediate mitigation to protect residents and the property.

Which clause in a lease agreement protects the property owner when a resident is injured due to their own negligence?

Answer: Hold harmless clause

A hold harmless clause releases the property owner from liability for injuries resulting from the resident's own negligence.

A property experiences a bedbug infestation reported in multiple units. Under a risk management framework, this is best classified as which type of risk?

Answer: Operational risk

Bedbug infestations are operational risks tied to day-to-day property management processes.

What is the purpose of a Certificate of Insurance (COI) collected from vendors before they begin work on a property?

Answer: To confirm the vendor carries adequate liability coverage

A COI confirms the vendor's insurance is active and sufficient, protecting the property owner from liability for vendor-related incidents.