Principles of Risk Management

A Risk is _____.

• a potential negative outcome

• a guaranteed event

• a positive opportunity

• an irrelevant factor

Risk Management is important because _____.

• It helps in identifying potential risks.

• It increases the likelihood of project failure.

• It eliminates all risks completely.

• It is a legal requirement.

What is risk tolerance?

• Amount of acceptable deviation

• Low risk tolerance

• Moderate risk tolerance

• Accept to achieve the objectives

What are the various methods of risk identification?

• Brainstorming

• Random guessing

• Ignoring risks

• Assuming all is well

What are the seven ways to deal with risk? _____

• Avoidance

• Mitigation

• Transfer

• Reduction

• Acceptance

The fundamental difficulty in risk assessment is _____.

• Lack of data

• Overconfidence in predictions

• Inability to quantify risks

• Ignoring stakeholder input

What are the potential risk treatments?

• Risk avoidance

• Risk acceptance

• Risk transfer

• Risk mitigation

The stages of Risk management include _____.

• Identification

• Assessment

• Mitigation

• Monitoring

Differentiate between Enterprise risk management Vs Traditional risk management. _____

• Enterprise risk management is more comprehensive than traditional risk management.

• Enterprise risk management focuses only on financial risks.

• Enterprise risk management is less structured than traditional risk management.

• Enterprise risk management does not involve stakeholder engagement.

Which is better ISO 31000 or COSO ERM .Elaborate. _____

• ISO 31000

• COSO ERM

• Neither

• Both