CGFO Fin Adm
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Retirement Income Options:
True or False
Is the presumption that an participant becomes itll or dies from heart disease or tuberculosis is in the line of duty.
When should an Actuarial Impact Statement be filed?
Every 3 years
Should management be in involved in the section of deferred comp plans investment program or other offerings for employees?
True or False
What does it mean if the pension plan's portfoilio performed in the 99th percentile (good or bad)
Bad - false
number up = bad
What is the most appropriate asset allocation model do?
The most appropriate asset allocation model has the highest probability of meeting the plan's goal, at an acceptable level of risk.
Which asset classes to invest
Vast majority of a portfolio's investment returns.
Calculate Retirement Income based on what?
Age, years of services and compensation
What is the fundamental activities of a risk management program is to identify _____ and do ________.
Identify Risk and Purchase Insurance
Claims>Premiums = LOSS
Claims<Premiums = Gain
What does IBNR mean?
Incurred but not reported - as in claims
How do actuary estimates work?
Actuary estimates the value of claims pending and estimates reserves needed.
How should claim liability be represented?
if they represent a structured settlement with payments on fixed dates.
Why Manage Risk?
Create a safe workplace
Prevent financial losses
Provide stability (budget)
What are the Four Stages of Risk Management Program?
How do you identify and evaluate Risk?
CLEOPPS DUMBO is not a risk
Question is false choice "C" coordinating
What is Tort Reform?
that aims to curb the growing number of
and their attendant costs.
Caps or limits
What Moral Hazard?
Change in behavior due to purchase of insurance. Burn down house or gail to install smoke alarms.
What are the 4 tools to minimize risk?
T R A P
Treat Exposure (RISK) by Loss's prevention (Avoidance).
How can you manage risk?
You can manage risk by joining an intergovernmental pool.
What is prevention tool to prevent and control risk?
Training and workshops addressing safety in the workplace is a tool in Loss prevention.
Training is key!!!!
What is a tool to Transfer Risk?
Hold-Harmless agreements help transfer risk when privatizing.
What is the majority of all risk claims from?
Majority of all claims paid by government relate to workers compensation.
What is the primary purpose of a risk management committee?
Primary purpose of a risk management committee is to creat the risk management policy.
In addition to general liability insurance to limit risk exposures what other type of insurance is good to have for elected ofiicials?
Ina addition to general liability insurance for elected officials you can supplement this with
errors and omissions policies.
What type of risk should a Risk Manager be concerned with?
ALL RISK, not just workers compensation, general liability and property loss.
Claims up = Risk pool
Claims down = Self insured
How much reserves should self insurance funds have?
Self insurance funds should have enough available reserves to fund all claims incurred.
What is a good performance measure for risk management?
Claims processed per an employee is a good performance measure for risk management.
What are the five managerial functions?
Managerial function planning what is one?
Decide which objectives/goals to pursue
Managerial function Decision Making is what?
Decision making is a rational selection of a course of action, a model of a logical system and the core of planning
What is the Scalar Principle?
Direct authority relationship superior to subordinate.
Management Functions Staffing Span of Control how many can be effectively controlled?
What are problems
Upper level 4 - 8
Lower level 8-15
Manager must know limits
Dilutes planning and control
Management Functions Directing how to measure goals?
A manager cannot check on subordinate's accomplishments without having planned goals to measure against.
What is the key to Management Functions Directing?
Key to seeting usefull objectives is verifiability/measurability.
Management Functions Controlling what is an example?
Paying close attention to budget exceptions would be an example of a control system.
Management Functions Planning what are procedures?
Procedures are plans to establish a customary method of handling future activities. FUTURE
Management Functions Planning Span of Management what are managers forced to do with planning?
Managers are forced through planning to consider the future and Planning is a simply a rational aproach to the future.
Under Management what is Leadership?
Leadership is a skill with the ability to invent and use appropriate motivators and the ability to inspire.
Leaders are made not born
What is effective management style?
Effective management style reacts to the situation, ranging from dictatorial to friendly.
What is a quality management system?
What is a system?
An interrelated set of interacting components.
What is a management system?
Part of a larger system
What the Characteristics of Effective Vision?
An effective vision statement is outcome based, inclusive of the majority of the community and inspiring.
What is gainsharing?
Gainsharing encourages employees to demand a role in rooting out systemic waste.
CGFO Fin Adm
CGFO Financial Administration Exam