#1
Which of the following is NOT a primary component of risk management?
Risk identification
Risk mitigation
Risk celebration
Risk assessment
#2
What is the purpose of risk identification in fraternal organizations?
To ignore potential risks
To evaluate potential risks and their characteristics
To encourage risky behavior
To avoid risk mitigation strategies
#3
What is the primary goal of risk management in fraternal organizations?
To eliminate all risks
To maximize risk exposure
To minimize the impact of potential risks
To ignore potential risks
#4
Which of the following is a characteristic of risk tolerance?
It is static and unchangeable
It varies depending on the organization's objectives
It is always extremely high
It remains constant across all organizations
#5
Which of the following is an example of a strategic risk for a fraternal organization?
An unexpected increase in membership
A decline in fundraising efforts
A natural disaster affecting the organization's headquarters
An increase in operational efficiency
#6
What is a risk register used for in risk management?
To document and monitor identified risks
To increase the probability of risks occurring
To ignore potential risks
To transfer risks to another party
#7
Which risk management technique involves transferring the risk to another party?
Risk avoidance
Risk retention
Risk transfer
Risk acceptance
#8
What does the term 'risk appetite' refer to in risk management?
The willingness of an organization to take on risk
The fear of risks within an organization
The ability to eliminate all risks
The inability to recognize risks
#9
What is risk mitigation?
The process of intentionally increasing risks
The process of identifying risks
The process of reducing or controlling risks
The process of ignoring risks
#10
Which of the following is NOT a step in the risk management process?
Risk assessment
Risk avoidance
Risk monitoring
Risk response planning
#11
In risk management, what does the term 'mitigation' refer to?
The process of avoiding risks
The process of eliminating risks
The process of reducing risks
The process of accepting risks
#12
Which of the following is a common technique for risk avoidance?
Diversification
Acceptance
Transference
Not engaging in the risky activity
#13
Which of the following is a key benefit of effective risk management in fraternal organizations?
Increased financial losses
Decreased member engagement
Improved decision-making
Decreased accountability
#14
What role does risk assessment play in risk management?
It helps in increasing risks
It helps in understanding the probability and impact of risks
It encourages ignoring risks
It assists in transferring risks
#15
What is the purpose of risk communication in risk management?
To keep all risks confidential
To inform stakeholders about identified risks and mitigation strategies
To increase risk exposure
To ignore risks altogether
#16
What is the term used to describe the process of reducing the impact of a risk?
Risk transference
Risk mitigation
Risk acceptance
Risk avoidance
#17
What is the primary goal of risk communication in risk management?
To keep all risks confidential
To inform stakeholders about identified risks and mitigation strategies
To increase risk exposure
To ignore risks altogether