Regulatory Compliance & Risk Management Flashcards
7 cards from real UMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance & Risk Management flashcards as text
Which regulatory framework requires utilities serving more than 10,000 people to develop an asset management program as a condition of receiving State Revolving Fund (SRF) loans?
Answer: EPA Capacity Development provisions under SDWA 1996
The SDWA 1996 Capacity Development provisions require states to ensure that new and existing systems demonstrate technical, managerial, and financial capacity, which SRF programs reinforce.
What is the primary purpose of a 'root cause analysis' following a compliance failure at a water utility?
Answer: To identify the fundamental underlying cause so it can be corrected and prevented from recurring
Root cause analysis identifies why a failure occurred at its most fundamental level, enabling the utility to implement corrective actions that prevent recurrence.
Under the Risk Management Program (RMP) rule administered by EPA, which utilities are most likely required to submit an RMP plan?
Answer: Utilities storing threshold quantities of regulated substances such as chlorine gas or anhydrous ammonia
The RMP rule applies to facilities that store regulated substances (e.g., chlorine gas, anhydrous ammonia) above threshold quantities, requiring hazard assessment and prevention programs.
A utility manager implements a new cross-connection control program requiring annual backflow preventer testing. This primarily mitigates which category of risk?
Answer: Public health and water quality risk
Cross-connection control prevents contaminated water from flowing back into potable water systems, directly protecting public health and water quality.
What is the regulatory significance of a utility's 'public notification' obligation under the Safe Drinking Water Act?
Answer: It ensures customers receive timely information about health risks from violations so they can take protective action
Public notification requirements ensure customers are informed promptly about violations so they can make informed decisions about water use and take protective steps.
Which concept describes the legal principle that a utility can be held liable for harm caused by known risks it failed to address despite having the resources to do so?
Answer: Negligence
Negligence is the failure to exercise reasonable care, and utilities can be found negligent when they knew about a risk, had means to mitigate it, and failed to act.
When a utility performs a regulatory gap analysis, what is the primary output it seeks to produce?
Answer: A prioritized list of areas where current practices fall short of applicable regulatory requirements
A regulatory gap analysis systematically compares current utility practices against regulatory requirements to identify and prioritize areas of non-compliance or compliance risk.