#1
Which of the following is an example of a financial risk?
Market risk
ExplanationRisk associated with changes in market conditions affecting investments.
#2
Which industry is most likely to face regulatory compliance risks?
Healthcare
ExplanationIndustry subject to strict regulations regarding patient safety and data privacy.
#3
Which of the following is an example of operational risk?
Technological failures
ExplanationRisks associated with internal processes, systems, and people.
#4
What is the purpose of a risk register in risk management?
To track identified risks and their characteristics
ExplanationDocument detailing identified risks and relevant information.
#5
Which of the following is a characteristic of residual risk?
It is the risk that remains after risk management actions are implemented
ExplanationRisk remaining after risk mitigation measures are applied.
#6
What is the primary goal of risk management?
To minimize the impact of risks
ExplanationEffort to reduce negative consequences of uncertain events on objectives.
#7
Which risk management strategy involves accepting the consequences of a risk without attempting to control it?
Risk acceptance
ExplanationAcknowledging potential outcomes and deciding not to intervene.
#8
Which of the following is a key component of enterprise risk management (ERM)?
Risk culture
ExplanationCulture fostering awareness, understanding, and management of risks.
#9
In the context of project risk management, what does the term 'mitigation' refer to?
Reducing the probability or impact of a risk
ExplanationEffort to lessen likelihood or severity of adverse effects.
#10
Which of the following is a characteristic of a well-defined risk appetite?
It aligns with organizational objectives and values
ExplanationConsistency between risk tolerance and organizational goals.
#11
What does the term 'hazard analysis' refer to in risk management?
Identifying potential sources of harm
ExplanationProcess of recognizing elements posing threats to objectives.
#12
Which risk management approach involves diversifying investments to reduce risk?
Risk diversification
ExplanationSpreading investments across various assets to minimize exposure.
#13
Which risk management technique involves retaining risk within an organization rather than transferring it?
Risk retention
ExplanationDecision to accept and manage risks internally without external help.
#14
What is a key benefit of conducting regular risk assessments?
To identify emerging risks
ExplanationRecognition of new or evolving threats to objectives.
#15
What is the purpose of risk monitoring and control?
To track identified risks and implement risk response plans
ExplanationProcess of observing risks and enforcing predetermined strategies to address them.