Which of the following is one of the four commonly recognized exposure to loss types for a community association?

• A. Personnel exposure to loss
• B. Market exposure
• C. Credit exposure
• D. Environmental exposure

Answer: (A)

In risk management for a community association, loss exposures are typically grouped into four broad areas: property, liability, personnel, and net income (or business interruption). Personnel exposure to loss covers risks that come from people connected with the association—board members, employees, volunteers, and contractors—including injuries, errors or omissions in actions, or employment-related claims. That’s why it’s the best answer: it fits the standard set of major loss exposure categories. The other options describe different kinds of risk—market risk relates to investments, credit risk to money owed to the association, and environmental risk is more specific and not one of the four core exposure types for HOAs.