#1
Which of the following best defines risk management?
Identifying, assessing, and prioritizing risks
ExplanationRisk management involves the process of identifying, assessing, and prioritizing risks.
#2
What is the primary goal of risk management?
To reduce the impact of risks to an acceptable level
ExplanationThe primary goal of risk management is to reduce the impact of risks to an acceptable level.
#3
What is the purpose of a risk management plan?
To document how risks will be managed
ExplanationA risk management plan is used to document how risks will be managed.
#4
Which of the following is NOT a component of risk management?
Risk concealment
ExplanationRisk concealment is not a component of risk management.
#5
What is the main purpose of risk monitoring and control?
To ensure that risk responses are effective
ExplanationThe main purpose of risk monitoring and control is to ensure that risk responses are effective.
#6
Which of the following is a step in the risk management process?
Risk assessment
ExplanationRisk assessment is a key step in the risk management process.
#7
What is the purpose of a risk register?
To document identified risks
ExplanationA risk register is used to document identified risks in the risk management process.
#8
What is the difference between qualitative and quantitative risk analysis?
Quantitative analysis uses numerical data, while qualitative analysis uses descriptive data
ExplanationQuantitative analysis uses numerical data, while qualitative analysis uses descriptive data in risk analysis.
#9
In risk management, what does the term 'residual risk' refer to?
Risk that remains after risk responses have been implemented
ExplanationResidual risk refers to the risk that remains after risk responses have been implemented in risk management.
#10
Which risk response strategy involves sharing the risk with a third party?
Risk transfer
ExplanationRisk transfer involves sharing the risk with a third party as a response strategy in risk management.
#11
Which risk response strategy involves taking actions to reduce the probability and/or impact of a risk?
Risk mitigation
ExplanationRisk mitigation involves taking actions to reduce the probability and/or impact of a risk.
#12
What does the term 'risk appetite' refer to?
The level of tolerance for risk
ExplanationRisk appetite refers to the level of tolerance for risk in the context of risk management.
#13
What is the key difference between risk avoidance and risk mitigation?
Risk avoidance reduces the probability of a risk occurring, while risk mitigation reduces the impact of a risk
ExplanationRisk avoidance reduces the probability of a risk occurring, while risk mitigation reduces the impact of a risk.