#1
What is risk management?
A process to identify, assess, and mitigate risks
ExplanationSystematic approach to identify, evaluate, and minimize potential threats
#2
Which of the following is NOT a step in the risk management process?
Risk Ignorance
ExplanationExclusion of a nonexistent step in the risk management process
#3
What is the main objective of risk response planning?
To develop strategies to deal with identified risks
ExplanationPlanning strategies to address identified risks
#4
Which of the following is NOT a risk response strategy?
Convenience
ExplanationNonexistent risk response strategy
#5
What is the purpose of a risk management plan?
To document how risks will be identified, assessed, and managed
ExplanationDocumenting the process of identifying, assessing, and managing risks
#6
What is risk mitigation?
A process of reducing the impact or likelihood of a risk
ExplanationStrategies to lessen the impact or likelihood of identified risks
#7
What is a risk register?
A document used to track identified risks, their impacts, and responses
ExplanationDocument for monitoring identified risks, their impacts, and planned responses
#8
What is the purpose of a risk assessment matrix?
To prioritize risks based on their impact and likelihood
ExplanationTool for prioritizing risks based on impact and likelihood
#9
What is the difference between qualitative and quantitative risk analysis?
Qualitative analysis uses subjective judgment, while quantitative analysis uses objective data
ExplanationSubjective vs. objective methods in analyzing risks
#10
What is risk appetite?
The level of risk an organization is willing to accept
ExplanationOrganization's tolerance for accepting risk
#11
What does the term 'residual risk' refer to?
Risk that remains after risk responses have been implemented
ExplanationRemaining risk after implementing response strategies
#12
What is the difference between inherent risk and residual risk?
Inherent risk is the risk before risk response, while residual risk is the risk after risk response
ExplanationRisk before vs. after implementing response strategies
#13
What is the difference between a risk event and a risk factor?
A risk event is a specific occurrence that may impact objectives, while a risk factor is an underlying cause or driver of risk
ExplanationSpecific occurrence vs. underlying cause of risk