MCQ Learning activity

Question 1

Why reliability matters

Answer 1

Reliability matters because it reduces cost of ownership, increases budget certainties, reduces downtime and enhances predictable outcomes.

Question 2

What is reliability management?

Answer 2

Reliability refers to anticipation and resilience as part of
organisations’ ability to plan for, absorb, and rebound from shocks.

Question 3

Motivation for RM

Answer 3

Organisations proactively engage with reliability management because they want to be the best.

Question 4

Short-term focus in RM

Answer 4

In reliability management, organisations tend to respond to crisis because of their short-term focus on psychological response to risk.

Question 5

Design

Answer 5

One of the factors explaining poor reliability management is poor basic design given the required operating context

Question 6

Talent

Answer 6

In reliability management performance, talent management is key in determining winners and losers.

Question 7

Customer-supplier relationship

Answer 7

As strategic partners in reliability management, customer and supplier bring knowledge that can help to assess problems and shortcomings more effectively.

Question 8

Culture

Answer 8

A key motivation in reliability management is to establish a reward structure that creates an incentive for the desired behaviour.

Question 9

Enterprise risk management definition

Answer 9

ERM is designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite.

Question 10

ERM and risk management

Answer 10

ERM is adopted by organisations as a useful tool for
decision-making.

Question 11

ERM evaluation

Answer 11

ERM assessment looks at probability on a consistent basis as opposed to evaluating it sporadically, which alone adds tremendous value for the organisation.

Question 12

ERM assessment

Answer 12

) ERM analysis uses a variety of tools to examine interdependencies, understand triggers between risks and cumulative effects of risks.

Question 13

ERM programme 1

Answer 13

A robust ERM programme can develop the entire picture of risks that could help or harm the organisation’s ability to meet its goals.

Question 14

ERM programme 2

Answer 14

ERM programme can identify emerging risks that could affect the organisation down the road.

Question 15

ERM framework

Answer 15

ERM framework must, at the very least define strategic, operational, reporting and compliance objectives.

Question 16

Risk identification

Answer 16

In risk identification as part of ERM framework, it is important that the internal and external events that could affect the achievement of organisational objectives are identified, distinguishing between risks and opportunities.

Question 17

Risk control measures

Answer 17

Risk control measures in ERM framework is where management requires decision about what risks to avoid, accept, reduce or transfer and development of a series of actions to tune the risks with the entity’s risk tolerance level and appetite for risk.

Question 18

ERM evaluation

Answer 18

Evaluation of ERM framework encompasses a comprehensive stepwise approach to set risk management objectives, identify and assess risks as well as selecting and implementing appropriate risk controls and monitor and review activities.