#1
What is the primary goal of risk management?
To minimize the impact of uncertainties
ExplanationMinimize impact of uncertainties.
#2
Which risk response strategy involves taking advantage of an opportunity if it occurs?
Exploiting
ExplanationTake advantage of opportunities.
#3
In risk management, what does the term 'SWOT' stand for?
Strengths, Weaknesses, Opportunities, Threats
ExplanationStrengths, Weaknesses, Opportunities, Threats.
#4
Which risk response strategy involves accepting the potential consequences of a risk without taking specific actions?
Acceptance
ExplanationAccept potential risk consequences.
#5
In risk management, what does the acronym 'ERM' stand for?
Enterprise Risk Management
ExplanationEnterprise-wide risk management.
#6
Which of the following is a key component of the risk management process?
Avoidance
ExplanationAvoiding risks is key.
#7
What does the term 'mitigation' mean in the context of risk management?
Reducing the likelihood or impact of risks
ExplanationReduce risk likelihood or impact.
#8
Which risk assessment method involves assigning a numerical value to the probability and impact of risks?
Quantitative risk analysis
ExplanationAssign numerical values to risks.
#9
What is the difference between a 'threat' and an 'opportunity' in risk management?
A threat is a potential negative event, and an opportunity is a potential positive event
ExplanationThreats are negative, opportunities are positive.
#10
What is the purpose of a risk matrix in risk assessment?
To represent the likelihood and impact of risks visually
ExplanationVisual representation of risks.
#11
Which risk management technique involves transferring the risk to a third party?
Insurance
ExplanationRisk transfer via insurance.
#12
What is the purpose of a risk register in project risk management?
To list potential risks and their characteristics
ExplanationListing potential risks.
#13
In the context of risk management, what is 'residual risk'?
Risk remaining after risk response actions
ExplanationRisk after response actions.
#14
What is the purpose of a risk appetite statement?
To define the maximum amount of risk an organization is willing to accept
ExplanationDefine maximum acceptable risk.
#15
What is the role of a risk owner in the risk management process?
To manage and monitor a specific risk
ExplanationManage and monitor specific risks.