Revision Flashcards
What is the definition of risk according to the document?
The effect of uncertainty on objectives
What is the main purpose of process mapping in risk identification?
Identify risks in workflows
Scenario analysis is particularly useful for?
Which type of risks?
Low-frequency, high-severity risks
In risk scenario workshops, participants are encouraged to……
Focus on what?
Focus on quantity of ideas before evaluation
What are exposures in risk management?
Key clients and critical systems
Which of the following is a key benefit of identifying vulnerabilities?
Enhancing risk transparency
Which factor often leads to myopia bias in risk assessments?
Relying on past events too much
Why is business intuition often more effective than complex data in identifying risk interconnections?
Business experience captures hidden risks not reflected in historical data
How can organizations improve the accuracy of RCSAs?
By using a standardized risk rating framework
What is the primary challenge in converting non-financial impacts into financial terms during scenario assessment?
The lack of standardized financial metrics for qualitative risks
