Risk Management Quiz

When Bob covers the windows of his deli with plywood to protect them from approaching hurricane winds, what is he trying to do with the risk?

• accept

• analyze

• mitigate

• transfer

The two dimensions of risk are:

• impact and avoidance

• probability and impact

• probability and avoidance

• mitigation and acceptance

A good source of information about the retroactive risks of a business would be a/an:

• environmental scan

• purchasing manager

• business incident log

• local weather forecast

What category of risk typically has the most impact on the ability of a business to reach planned goals and objectives?

• financial

• hazard

• operational

• strategic

Which statement accurately describes the nature of prospective risks?

• They are typically more common than retroactive risks.

• They are usually easier to identify than retroactive risks.

• They have failed to happen before but could occur in the future.

• They have occurred in the past so they will fail to reoccur in the future.

Which is often used to measure and rate potential risks?

• an environmental scan

• transference strategies

• an impact/probability chart

• contingency and fallback plans

Fiona uses her generator to keep her restaurant open during a power outage so she can serve hot meals to the community. She is turning her risk into a strategic advantage by indicating she is:

• risk-averse

• risk-seeking

• risk-tolerant

• risk-accepting

Technological innovations can increase the strategic risk for business by:

• causing interest rate growth

• making some products obsolete

• eliminating the convenience of buying in person

• decreasing the supply of people seeking employment

Lilly's Laundry had a washer malfunction that flooded the business, causing it to close for three weeks. What kind of risk is this?

• financial

• operational

• pure

• speculative

An earthquake is an example of which type of risk?

• operational

• pure

• speculative

• strategic