Risk Management Quiz

The first step in the Risk Management Model is:

• Assess and prioritize risks

• Identify hazards

• Implement controls

• Monitor and review results

The Enterprise Risk Management (ERM) model includes all the following steps EXCEPT:

• Evaluate risks

• Treat risks

• Ignore results

• Monitor and review results

Adapting a risk management model to meet an organization's needs requires:

• Ignoring the unique characteristics of the organization

• Using a standard, unchanging model

• Tailoring the approach based on the organization's structure and risks

• Implementing only the legal components of the model

How does risk create value in an organization?

• By causing financial losses

• By challenging companies to take smart, calculated risks to grow and innovate

• By increasing employee turnover

• By reducing the need for insurance

The first stage in the risk management process of creating a risk program is:

• Implement controls

• Identify potential risks

• Treat risks

• Monitor and review results

Risk forecasts are typically used to:

• Set short-term company goals

• Predict future risks and their potential impact

• Ignore risks and move forward

• Analyze past risks only

Risk mapping helps organizations:

• Identify unknown risks

• Plot risks on a graph according to their likelihood and impact

• Avoid taking any risks

• Maximize potential returns without considering risks

The cost of risk refers to:

• The price of insurance premiums only

• The total costs associated with managing and mitigating risks

• The cost of workplace accidents only

Risk control theories are applied to:

• Create strategies for reducing, preventing, enabling, and enhancing risks

• Maximize the potential for risk

• Ensure that risks are ignored

• Increase the likelihood of risk occurrences

An emergency response plan is designed to:

• Ignore potential threats to the organization

• Provide a framework for responding to unexpected crises

• Deal with only financial crises

• Focus on business profits over safety