Risk Classification System

What is the purpose of a risk classification system?

• To eliminate all risks

• To assess and categorize risks

• To maximize profits

• To predict the future

Which of the following is a common factor used in risk classification?

• Favorite color

• Age of the CEO

• Industry type

• The length of the company's name

In a risk classification system, a high-risk category typically implies:

• Low potential for harm

• Minimal uncertainty

• Greater potential for loss or harm

• Zero consequences

In a risk assessment, what does the term "low risk" typically indicate?

• Minimal or insignificant potential for harm or loss

• A guarantee of profit

• Immediate danger

• A high level of uncertainty

What characterizes a situation that is classified as "high risk"?

• Minimal consequences and impact

• Predictable outcomes

• Substantial potential for significant harm or loss

• Complete absence of uncertainty

What does the FIRM Scorecard in risk management primarily measure?

• Environmental factors

• Financial performance

• Cybersecurity risks

• Risk maturity and capabilities

Which of the following is a key component of the COSO Risk Management Model?

• SWOT analysis

• Risk appetite

• Supply chain management

• Advertising strategy

What does ISO 31000 primarily provide guidance on?

• Human resource management

• Environmental regulations

• Risk management principles and guidelines

• Accounting standards