Business Risk Quiz

Which of the following is a form of risk response that involves eliminating the cause of a risk?

• Mitigation

• Acceptance

• Avoidance

• Diversification

Why might a business choose to accept a risk?

• Because it is cheaper than other options

• Because the risk is unavoidable

• Because it increases the risk

• Because it eliminates the risk

What is a potential consequence of not reviewing risks regularly in a business?

• Increased profits

• Severe impact if risks come to fruition

• Decreased employee satisfaction

• Improved market position

What legal consequence is mentioned as a result of privacy and security risks?

• Increased advertising

• Legal fees and regulatory penalties

• Hiring more staff

• Expanding business locations

What is a damaging implication of risk mentioned in the document?

• Increase in sales

• Loss of reputation

• Improved customer trust

• Enhanced business operations

What must businesses review to ensure optimum resilience?

• Marketing strategies

• Risk mitigation strategies

• Employee benefits

• Office locations

What should employee policies state?

• Roles and responsibilities

• Vacation days

• Salary increases

• Office locations

Which of the following is NOT a reason for revoking a business licence?

• The business is convicted of a criminal offence

• The business is a risk to public safety

• The business changes its logo

• The business does not meet the licensing criteria

What is the role of a business licence in terms of public health and safety?

• It increases business profits

• It protects the health and safety of the general public

• It reduces business taxes

• It enhances marketing strategies

What is a potential impact of risks on a business?

• Increase in customer base

• Loss of business

• Expansion of services

• Improvement in employee morale