Risk Management
Which one is not a definition of risk?
Effect of uncertainty on objectives
Combination of probability of an event and its consequence
Change or loss or danger
Certainty of outcome, events
Not in the list
Risks can be measured in terms of
Impact of events
Range of exposure
Change in circumstances
Consequences and likelihood
None of the above
Risks has no impact in the fulfillment of corporate objectivesm
True
False
For risk to materialize, an event must occur.
True
False
Which is a type of risk?
Compliance or mandatory risk
Hazard or pure risk
Control or uncertainty risk
Opportunity or speculative risk
All of the above
Example of hazard risk is____
Call Center
Construction worker
Theft
This is type of risk when events can only result to negtive outcomes.
Negative risk
Problem risk
Pure Risk
Non-pure Risk-
Non-hazard Risk
This risk give rise to uncertainty about the outcome of a situation
Direct Risk
Control Risk
Opportunity Risk
Hazard Risk
None in.the list
The management of control risk will often be undertaken in order to ensure that the outcome from the business activities falls outside the desired range.
True
False
When an organizatiom has specific appetite for investment, this type of risk is called___.
Appetite risk
Investment risk
Opportunity Risk
Speculative Risk
C and D
The most common risk type associated with operations
Hazard Risk
Control Risk
Opportunity Risk
Operations Risk
Occupational Risk
Risk may be positive or negative outcomes or may result to certainty
True
False
Other term for control risk
Entertain risk
Direct Risk
Certainty Risk
Uncertainty Risk
Mandatory Risk
Opportunity Risks relate to the relationship of
Supply and demand
Needs and wants
Risk and return
Positive and negative
Value and satisfaction
The application of these will help the mgt handle the risks.
Tools and materials
Supplies nd materials
Furniture and fixtures
Tools and techniques
Tools and stocks
Control risks are associated with known and expected events
True
False
Opportunity risk can be visible or physical
True
False
Risk description is necessary to fully identify and understand the risk
True
False
Risk description includes the following except:
Name or title of the risk
Statement of the risk
Nature of risk
Stakeholders
All of the above
Example of Computer risk
Virus infection
Hacking
ñming
Phishing
All of the above
In defining rhe risk it must be
Narrow
Comprehensive
Both A and B
Either A or B
Non
This defines risk as a event
ISO 31000
Institute of Internal Auditors
A and B
A or B
Not on the list
The purpose of risk assessment is
Ro identify current level of risk
Identify the key controls
A and B
A or B
Not on the list
It is used to show the inherent level of the risk in terms od likelihood and magnitude
Risk Assessment
Risk Matrix
Risk scope
Risk level
Risk Tolerance
Inherent level of risk is also referred to ...
Residual Risk
Gross Risk
A and B
Occupational Risk
Hazard Risk
Current level is also called
Residual Level
Net Level
Managed Level
A B and C
None of the above
Risk can be classified into
Nature of the attributes of risk
Nature of impact or magnitude of the risk
Timescale of impact after event occurs
Source of risk or origin
All of the above
Risk can also be classified according to the component or feature of the orgsnization that will impacted.
True
False
Which of the components or feature of risk classification are included?
People, premises, processes, product
Manpower, money, machineries, methods
A and B
A or B
Not on the list
There is universal classification system that fulfills the requirements of all organization
True
False
Risk likelihood and magnitude is best demonstrated in using ____.
Risk table
Risk tools
Risk assessment
Risk matrix
Risk techniques
Which is not a benefit of risk matrix?
Risk matrix is valuble tool to risk management practitioner
Risk matrix serves as a map
Risk matrix illustrates risk likelihood and severity of event
Risk matrix is used to plot the nature of individual risks
None of the above
Horizontal axis represent magnitude and vertical axis as likelihood
True
False
Four areas of improvement used in risk management
Strategy,Tactics, Operations, Compliments
Strategy, Tactics, Operations, Communications
Strategy, Tactics, Operations, Compliance
Strategy, Tactics, Operations, Control
Strategy, Tactics, Production, Compliance
It refers to define how the event affects business processes (FIRM) in an organization
Impact
Magnitude
Risk criteria
Consequences
Not on the list
This refers to indicate the extent to which the event results in failure to achieve effective and efficient STOC
Impact
Consequences
Level of Risks
Magnitude
Not on the list
FIRM stands for
Finances, infrastructure, reputation, marketplace
Finances, info technology, reputation, marketplace
Finances, investments, reputation, market
Financial reports, infrastructure, reputation, marketplace
Not on the list
Key dependencies is the relationship of the following except:
Core processes
Corporate objectives
Stakeholders
Stockholders
Strategic or business plan and annual budget plan
High level processes that drive the organization
Low level
Med level
Core process
High level
Impact
Core procedures
This is the simple way of analysing a risk to gain a greater understanding
Neck tie
Vow tie
Bow tie
Knot tie
Not on the list
Types of risk according to timescale
Short, medium and long terms
Small, medium and large scales
Easy, average and difficult terms
Specific and general terms
Mid and final terms
This is important to develop an agreed perception of risk and attitude of risk
Common language
Unknown language
Linguists and interpreters
Protocols
Signs and symbols
These are the categeories of operational disruption
People
Premises
Processes
Products
All of the above
The type of risk with potential to enhance
Hazard
Opportunity
Control
Compliance
The approach that seeks to maximize the benefits of taking entrepreneurial risks.
Hazard management
Control management
Opportunity management
Compliance management
Risk management
This approach is adopted by internal auditors and accountants
Hazard managemenr
Control management
Risk Management
Compliance Management
Not on the list
Hazard managment is usually adopted by
Banking and Finance
Credit Cards
Loans
Stock Market
Insurances
What is the usual approach to compliance risks?
Optimize
Minimize
Mitigate
Eliminate
Which of the following is not Risk Mgt standards?
ISO 31000
IRM
The art and science of assessing, mitigating, administering uncertainties in order to achieve effective and efficient operations within the organization
Control mgt
Prevention mgt
Risk mgt
Hazard mgt
Opportunity mgt
{"name":"Risk Management", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Which one is not a definition of risk?, Risks can be measured in terms of, Risks has no impact in the fulfillment of corporate objectivesm","img":"https://www.quiz-maker.com/3012/images/ogquiz.png"}