05 Principles and aims Risk Management Quiz

What is the main principle of risk management?

• To ignore the risks

• To create uncertainty of outcomes

• To reduce volatility of outcomes

• To increase the value of the organization

According to ISO 31000, what should a successful risk management initiative be?

• Unaligned with other business activities

• Static and unresponsive to change

• Proportionate to the level of risk within the organization

• Unstructured and chaotic

What is the acronym used to describe the foundations of a successful approach to risk management within any organization?

• PACED

• VALUE

• OUTCOME

• RISK

What is the main purpose of risk management in an organization?

• To limit the decision-making process

• To reduce uncertainty about tactics

• To ignore the risks

• To increase disruption to normal operations

What is the main reason for the increasing importance of risk management in organizations?

• Decreasing ease of communication

• Reduced emphasis on accurate information reporting

• Decreasing stakeholder expectations

• Global financial crisis and corporate failures

What are the stages involved in the risk management process according to the IRM Risk Management Standard?

• 5 stages

• 10 stages

• 8 stages

• 12 stages

What is the main contribution of risk management to successful strategy?

• Ignoring the risks associated with strategy

• Increasing the range of possible outcomes

• Focusing only on hazard management

• Reducing the range of possible outcomes

What is the acronym used to describe the benefits obtained from a risk management initiative?

• FIRM

• RISK

• MADE2

• CORE

What is the main focus of risk management about operations?

• Opportunity management

• Compliance management

• Hazard management

• Control management

What are the overall benefits of a structured, proactive enterprise risk management approach for a theatre?

• Increased occupancy rates and spending in the theatre

• More failures of the IT systems

• Increased staff absence rates

• Decreased spending in the theatre by patrons