We received a copy of the new CPCU® 500 – Foundations of Risk Management and Insurance textbook and have compiled a detailed list of changes between the old second edition version and the newly updated third edition.
Please note: We do not provide any guarantee or warranty that this is an all-inclusive list of the changes to the latest textbook.
At first glance, the most recent release of the CPCU 500 textbook appears to be radically different than the old second edition because very little of each chapter’s content matches what it had before. The good news is that most of the content is indeed the same, but has merely been shifted around all over the place. Because the rearrangements have been so extensive, this list will focus only on those sections that are brand new or significantly edited.
Below is a list of noteworthy section changes (chapter numbers & titles taken from the new third edition book):
Chapter 1 – Overview of Risk Management
- ERM Definitions (expanded)
- The Changing Risk Management Environment (newly added section)
- Risk Management Objectives and Goals (section & subsections edited)
- Risk Management Process (section & subsections edited)
Chapter 2 – Identifying Loss Exposures
- Property Loss Exposures (content moved here from Chapter 1 & greatly expanded)
- Liability Loss Exposures (content moved here from Chapter 1 & greatly expanded)
- Personnel Loss Exposures (content moved here from Chapter 1 & greatly expanded)
- Net Income Loss Exposures (content moved here from Chapter 1 & greatly expanded)
Chapter 3 – Analyzing Loss Exposures
- Characteristics of Probability Distributions (content moved here from Chapter 2, section renamed & redone)
- Data Credibility (simplified)
Chapter 4 – Selecting Risk Control Techniques
- How Smart Products Apply to Risk Management (newly added)
- Business Continuity Management (removed)
- Business Continuity Planning (newly added)
Chapter 5 – Selecting Risk Financing Techniques
- Risk Financing Goals (section & subsections edited)
- Using Hold-Harmless Agreements (edited)
Please note that all CPCU 500 exams moving forward will be based on this new third edition, so be mindful if you are attempting to study with an older edition.
We’ve updated our study guide!
We’ve reorganized and updated our CPCU 500 study materials to reflect the changes from the newest third edition textbook. Don’t tackle your exam alone – get your study e-bundle today!
CPCU 500 Study Guide e-Bundle – Only $9.99
- For use with the 3rd edition textbook
- FREE lifetime updates (whenever we update our materials, you get access to the new version at no additional charge)
- Delivered instantly as PDF (up to 5 download attempts within 1 year of purchase date)
- Includes:
- Study guide
- BONUS: Types & Elements of Loss Exposures cheat sheet
- BONUS: Statistical Analysis of Risk cheat sheet
- BONUS: Normal Distribution and Standard Deviations handout
- BONUS: Risk Finance Measures & Goals sheet sheet
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