Enterprise Risk Management Quiz

Which of the following is the first step in the enterprise risk management process?

• Risk assessment

• Risk analysis

• Risk response

• Risk identification

What is the purpose of risk assessment in enterprise risk management?

• To determine risk appetite

• To evaluate the potential impact of risks

• To respond to risks effectively

• To identify risk events

What is the purpose of a risk response plan?

• To monitor risks

• To manage risks

• To identify risks

• To assess risks

What does risk appetite refer to in enterprise risk management?

• The total number of risks faced by an organization

• The willingness of an organization to take on and pursue risks

• The financial impact of risks on an organization

• The probability of risks occurring

What is the purpose of risk analysis in the enterprise risk management process?

• To identify new risks

• To evaluate the likelihood of risks

• To respond to risks

• To prioritize risks

Which of the following is the final step in the enterprise risk management process?

• Risk assessment

• Risk identification

• Risk response

• Risk monitoring

What is a risk event in enterprise risk management?

• An action taken to mitigate risks

• The likelihood of risks occurring

• A specific occurrence that may cause harm or loss

How does risk analysis contribute to decision-making in enterprise risk management?

• By identifying risks

• By evaluating the potential impact of risks

• By developing risk response plans

• By assessing risk events

What is the purpose of risk appetite statements in enterprise risk management?

• To define the organization's strategic objectives

• To communicate the organization's risk tolerance

• To identify potential risks

• To assess the likelihood of risks

What is the purpose of risk appetite frameworks in enterprise risk management?

• To evaluate risks

• To identify risks

• To manage risks

• To set risk tolerance levels