Risk Management

What is risk assessment?

• The process of ignoring potential risks and hazards

• The process of minimizing potential risks and hazards

• The process of evaluating potential risks and hazards to determine their likelihood and impact.

• The process of creating potential risks and hazards

Explain the difference between qualitative and quantitative risk assessment.

• Qualitative risk assessment involves numerical data and calculations

• Qualitative risk assessment focuses on the description and analysis of risks based on subjective judgment, while quantitative risk assessment involves the use of numerical data and calculations to assess risks.

• Quantitative risk assessment is based on subjective judgment

• Qualitative risk assessment uses only objective data to assess risks

What are the key steps involved in risk identification?

• Identifying potential risks, analyzing and evaluating the identified risks, prioritizing the risks, and developing a risk register or log

• Analyzing and evaluating the unidentified risks

• Not prioritizing the risks

• Ignoring potential risks

How can SWOT analysis be used for risk identification?

• By identifying internal strengths and weaknesses, which can help in identifying potential risks within the organization.

• By using it to identify customer preferences

• By ignoring the weaknesses of the organization

• By focusing only on external opportunities

What is risk response planning and why is it important?

• Risk response planning is unnecessary and a waste of time and resources.

• Risk response planning is the process of developing options and determining actions to enhance opportunities and reduce threats to project objectives.

• Risk response planning is the process of ignoring potential risks and hoping for the best.

• Risk response planning involves blaming others for any negative outcomes.

Discuss the various strategies for risk response planning.

• Escalating the risk

• Ignoring the risk

• Avoiding, transferring, mitigating, or accepting the risk

• Sharing the risk

What is the role of a risk owner in risk response planning?

• Identifying potential risks

• Creating a risk management plan

• Implementing the chosen risk response and ensuring its effectiveness

• Monitoring risk factors

Explain the concept of risk mitigation and provide examples.

• One example of risk mitigation is implementing fire safety measures in a building to reduce the risk of fire hazards.

• Implementing safety measures only after an accident has occurred

• Investing in high-risk stocks without diversifying the portfolio

• Ignoring potential risks and hoping for the best

What are the potential consequences of not having a proper risk response plan in place?

• Ability to effectively manage and mitigate risks

• Increased likelihood of negative impacts from risks, inability to effectively manage and mitigate risks, and potential financial and reputational damage.

• No financial or reputational damage

• Decreased likelihood of negative impacts from risks

What are the key components of a risk management plan?

• Identifying potential risks, analyzing and evaluating the identified risks, prioritizing the risks, and developing a risk register or log

• Ignoring potential risks

• Not prioritizing the risks

• Analyzing and evaluating the unidentified risks