Risk Management A Level

What are the potential risks associated with a new product launch?

• Potential risks may include supply chain management, customer loyalty, and brand reputation.

• Potential risks may include market acceptance, competition, regulatory compliance, production delays, and financial investment.

• Potential risks may include customer satisfaction, product quality, and employee training.

• Potential risks may include weather conditions, employee satisfaction, and advertising budget.

How would you analyze the risk factors involved in a business expansion plan?

• Focus on employee satisfaction, office decor, and team-building activities

• Consider the weather, local cuisine, and tourist attractions

• Consider market demand, competition, financial resources, regulatory environment, and potential challenges in the new location.

• Ignore all potential risks and proceed with the expansion plan

Provide an example of a risk management strategy for a manufacturing company.

• Regular equipment maintenance and inspection

• Hiring untrained staff

• Ignoring safety protocols

• Not having a backup power source

Explain the steps involved in implementing risk mitigation measures for a financial institution.

• Ignore risks and hope for the best

• Implement control measures without assessing risks

• Make adjustments without monitoring effectiveness

• Identify and assess risks, develop a risk management plan, implement control measures, monitor and review effectiveness, make necessary adjustments

What criteria would you use to evaluate the effectiveness of a risk management plan?

• Amount of money spent on risk management

• Frequency of team meetings

• Thoroughness of risk identification, appropriateness of risk analysis, effectiveness of risk response strategies, clarity of risk communication, and continuous monitoring and review.

• Number of employees in the company

In what ways can a company adapt its risk management plans to changing market conditions?

• Ignoring market conditions and sticking to the original risk management plan

• Relying solely on one type of investment

• Avoiding any changes to the risk management plan

• Regularly reviewing and updating risk assessment, diversifying investments, using hedging strategies, and staying informed about market trends

Identify potential risks in a project to build a new shopping mall.

• Construction delays, cost overruns, zoning issues, and market demand fluctuations

• Supplier reliability, government regulations, economic recession, and project management

• Weather conditions, employee turnover, marketing strategy, and customer satisfaction

• Material availability, customer preferences, competitor actions, and legal disputes

Analyze the risk factors involved in investing in a new technology startup.

• Evaluate the company's social media presence, the number of windows in the office, and the brand of coffee in the break room.

• Consider market competition, technological obsolescence, regulatory changes, and financial instability.

• Consider the weather, employee satisfaction, and marketing strategies.

• Look at the color of the office walls, the CEO's favorite food, and the company's logo.

Develop a risk management strategy for a transportation company dealing with natural disasters.

• Rely on government assistance to handle the impact of natural disasters

• Ignore potential risks and hope for the best

• Wait until a natural disaster occurs before making a plan

• Identify potential risks, create a contingency plan, and implement measures to mitigate the impact of natural disasters.

Implement risk mitigation measures for a cybersecurity breach in a large corporation.

• Not providing any security training to employees

• Ignoring all security measures and hoping for the best

• Implementing strong access controls, regular system updates, security training, and incident response plans.

• Implementing weak access controls and outdated system updates