Question 1

In the preventive law process, which of the following represent the first step?
A) Risk identification - The legal audit
B) Development of the preventive law plan
C) Implementation of the preventive law plan
D) Risk Evaluation

Accepted Answer

The first step in the preventive law process is to identify potential risks and legal issues. This is typically done through a legal audit, which involves reviewing all aspects of a business or organization to find areas where legal issues could arise. Only after identifying these risks can a preventive law plan be developed and implemented. Therefore, option A - risk identification through a legal audit - is the first step in the process.

Question 2

What is the fourth step in the preventive law process?
A) Risk identification - The legal audit
B) Development of the preventive law plan
C) Implementation of the preventive law plan
D) Risk Evaluation

Accepted Answer

The fourth step in the preventive law process is the development of the preventive law plan, which involves creating strategies and actions to mitigate identified legal risks.

Question 3

Which of the following is not part of the implementation process of the preventive law plan?
A) Developing unambiguous and efficient policies and procedures
B) Design effective training program
C) Drafting clear and workable contracts and administering them consistently
D) Identify the risks involved with the activity

Accepted Answer

Identifying risks involved with the activity is actually a crucial part of the implementation process of a preventive law plan. The other options, developing policies and procedures, designing effective training programs, and drafting clear and workable contracts, are all necessary steps in the implementation process.

Question 4

What is the most common risk transfer method?
A) Insurance
B) Using an independent contractor
C) Using waivers
D) Using indemnification clauses

Accepted Answer

Insurance is the most common risk transfer method as it allows the organization to transfer the risk to an insurance company in exchange for a premium payment. This provides protection and financial security to the organization in the event of certain types of losses or damages. The other options (using an independent contractor, using waivers, and using indemnification clauses) may also be used for risk transfer, but they are not as commonly used as insurance.

Question 5

_______________ is a broader approach that looks at all risks that could affect an institution's financial health.
A) Risk management
B) Risk transfer
C) Risk elimination
D) Preventive law

Accepted Answer

The answer of _______________ is a broader approach that looks...

Question 6

__________ means that your organization chooses to bear the financial consequences of an activity.
A) Risk retention
B) Risk control
C) Risk elimination
D) Risk transfer

Accepted Answer

The answer of __________ means that your organization chooses to...

Question 7

_________ is the key aspect of the preventive law plan since it involves the actual reduction of risk.
A) Risk control
B) Risk retention
C) Risk evaluation
D) Risk assessment

Accepted Answer

Risk control involves taking specific steps to reduce or eliminate potential hazards and prevent incidents from occurring. It is the key aspect of preventive law because it involves actively reducing risk, as opposed to simply evaluating or assessing it. Risk retention involves accepting the risks that cannot be avoided or transferred, while risk evaluation and assessment are important steps in identifying potential risks but do not involve taking action to reduce them.

Question 8

The approach to risk identification should be:
A) Focused only on personal injury risks
B) Focused only on property damage issues
C) Holistic
D) Piecemeal

Accepted Answer

The best approach to risk identification is a holistic one. This means looking at all potential risks that could impact an organization, including reputation risk, financial risk, operational risk, and more. Focusing only on personal injury or property damage risks would be too narrow, and piecemeal identification would miss potential interdependencies and systemic risks that a holistic approach could uncover.

Question 9

The traditional view of risk management is often confined to risks related to a personal injury lawsuit or property damage claim.

Accepted Answer

The traditional view of risk management has traditionally been focused on risks related to personal injury lawsuits or property damage claims, but it has evolved to encompass a much broader range of risks including financial risks, reputational risks, cybersecurity risks, natural disasters, and more.

Question 10

Adopting a "preventive law" view encompasses a broader view of all risks that could affect an institution.

Accepted Answer

Adopting a preventive law view means taking into account all potential risks and taking measures to prevent them from occurring, rather than only addressing legal risks after they have materialized. This broader view of risk management involves proactive measures to mitigate risks related to the institution's operations, personnel, and external factors that could impact the institution.

Question 11

The first step in the preventive law process is to engage in risk evaluation.

Accepted Answer

The answer of The first step in the preventive law...

Question 12

Risk assessment deals with determining the probability that particular risks will result in claims and the magnitude of the potential liability arising from those claims.

Accepted Answer

Risk assessment is the process of evaluating potential risks and determining the probability and magnitude of negative consequences. In the context of insurance, risk assessment is used to determine the likelihood that certain risks will result in claims, and the potential liability associated with those claims. Therefore, the statement that "risk assessment deals with determining the probability that particular risks will result in claims and the magnitude of the potential liability arising from those claims" is true.

Question 13

Risk transfer means that your organization chooses to bear the financial consequences of an activity.

Accepted Answer

Risk transfer means shifting the financial consequences of an activity to another party, such as through insurance or a contract. It is the opposite of bearing the financial consequences yourself.

Question 14

Risk control involves the actual reduction of risk.

Accepted Answer

Risk control is the process of implementing strategies and procedures to reduce the likelihood or potential impact of risks. Therefore, it involves the actual reduction of risk.

Question 15

Risk evaluation involves the use of methods to transfer risks of financial loss to another party.

Accepted Answer

Risk evaluation involves assessing and analyzing potential risks to determine the level of threat to the organization, and then developing strategies to avoid, mitigate, transfer or accept those risks. While transferring risks to another party can be one strategy, it is not the only method used in risk evaluation.

Question 16

Risk elimination is the method most commonly adopted to cope with risks.

Accepted Answer

Risk elimination is not always possible, as some risks are inherent in certain activities or situations. Therefore, other risk management strategies such as risk avoidance, risk reduction, and risk transfer may need to be employed.

Question 17

The preventive law plan should be incongruent with your organization's core values.

Accepted Answer

The preventive law plan should be congruent with the organization's core values. The plan should align with the mission and goals of the organization and reflect its values, culture, and ethics. This ensures that the plan is understood, adopted, and implemented by all members of the organization.

Question 18

The preventive law process should be undertaken only once and then forgotten.

Accepted Answer

The preventive law process should be an ongoing and dynamic process. It should be regularly reviewed and updated to ensure that it remains effective and relevant.

Question 19

Define both risk management and preventive law.

Accepted Answer

The answer of Define both risk management and preventive law....

Question 20

How can sport organizations use law as a competitive advantage?

Accepted Answer

The answer of How can sport organizations use law as...

Quiz 1: Introduction to Law and Management in Sport

In the preventive law process, which of the following represent the first step?

What is the fourth step in the preventive law process?

Which of the following is not part of the implementation process of the preventive law plan?

What is the most common risk transfer method?

_______________ is a broader approach that looks at all risks that could affect an institution's financial health.

__________ means that your organization chooses to bear the financial consequences of an activity.

_________ is the key aspect of the preventive law plan since it involves the actual reduction of risk.

The approach to risk identification should be: