Module 1

Question 1

Risk management process has four stages:

Risk Identification, Risk Analysis, Risk Control, and ____

Answer 1

Risk Treatment

Question 2

Risk Assessments 3 Components:
Risk Identification, Risk Analysis, and _____

Answer 2

Risk Evaluation

Question 3

The ____ of risk management is the creation and protection of value.

Answer 3

Purpose

Question 4

The ______ are the foundation for managing risk and should be considered when establishing the organization’s risk management framework and processes

Answer 4

Principles

Question 5

Risk Management Principles are:

Integrated
Structured and comprehensive
Customized
Inclusive
Dynamic
_____
Human and cultural factors
Continual improvement

Answer 5

Best available information

Question 6

Risk Assessments 3 Components:
__________, Risk Analysis, and Risk Evaluation

Answer 6

Risk Identification

Question 7

Risk Assessments 3 Components:
__________, Risk Analysis, and Risk Evaluation

Answer 7

Risk Identification

Question 8

Risk management process has four stages:

Risk Identification, Risk Analysis, ______, and Risk Treatment

Answer 8

Risk Control

Question 9

Risk Management Principles are:

Integrated
Structured and comprehensive
Customized
________
Dynamic
Best available information
Human and cultural factors
Continual improvement

Answer 9

Inclusive

Question 10

Risk Management is an integral part of all organizational activities

Answer 10

Integrated

Question 11

A structured and comprehensive approach to risk management contributes to consistent and comparable results.

Answer 11

Structured and comprehensive

Question 12

The risk management framework and process are customized and proportionate to the organization’s external and internal context related to its objectives.

Answer 12

Customized

Question 13

Appropriate and timely involvement of stakeholders enables their knowledge, views and perceptions to be considered. This results in improved awareness and informed risk management.

Answer 13

Inclusive

Question 14

Risks can emerge, change or disappear as an organization’s external and internal context changes. Risk management anticipates, detects, acknowledges and responds to those changes and events in an appropriate and timely manner.

Answer 14

Dynamic

Question 15

The inputs to risk management are based on historical and current information, as well as on future expectations.

Answer 15

Best available information

Question 16

Human behavior and culture significantly influence all aspects of risk management at each level and stage.

Answer 16

Human and cultural factors

Question 17

Risk management is continually improved through learning and experience.

Answer 17

Continual improvement

Question 18

The very purpose is to find, recognize and describe the risks that might help or prevent an organization to achieve its objectives.

Answer 18

Risk identification

Question 19

The initial stage of the risk management process is systematically identifying risks facing the organization.

Answer 19

Risk Assessment

Question 20

_____ is an analytical process to provide information regarding undesirable events in which it estimates probabilities and expected consequences for identified risks.

Answer 20

Risk Analysis

Question 21

It is a process that is used to compare risk analysis results with risk criteria in order to determine whether or not a specified level of risk is acceptable or tolerable.

Answer 21

Risk Evaluation

Question 22

It is a management tool which accurately assess business exposure , based on the frequency and severity of identified potential risks.

Answer 22

Risk Evaluation Matrix

Question 23

Both frequency and severity of risk is low. (L,L)

Answer 23

Risk Retention

Question 24

Frequency of risk potential is low, but the severity of potential incident is high. (L,H)

Answer 24

Risk Transfer

Question 25

Severity of potential risk remains low but the overall frequency of risk is increasing. (H,L)

Answer 25

Risk Reduction

Question 26

Four Management Response Option:
Risk retention, Risk Transfer, Risk Reduction, and ____

Answer 26

Risk Avoidance

Question 27

Frequency and severity are high. (H,H)

Answer 27

Risk Avoidance

Question 28

Once the risks are identified and analyzed, the next step is implementing mitigation strategies for any unacceptable risks. This step is called ________, and it comprisestwo primary concepts: exposure avoidance and loss reduction.

Answer 28

Risk Control

Question 29

Failing the ability to control all risks identified, the next step in the process is ________. This includes the concept of risk transfer and risk retention.

Answer 29

Risk Treatment