CRMP - Practice Module 1-7

What is a common barrier to fostering a risk management culture?

• Lack of resources

• Overcommunication

• Too much collaboration across teams

• An abundance of risk awareness

1. What is a hazard in the context of risk management?
   

 

• 1. A specific risk related to financial loss

• 1. Any potential source of harm or danger that can cause injury, damage, or harm

• 1. An unavoidable outcome of a decision

• 1. A theoretical concept without real-world applications

1. What is the purpose of risk mapping in risk management?
   

• 1. To create a visual representation of all possible outcomes of a project

• 1. To eliminate risks entirely from the process

• 1. To prioritise risks based on their likelihood and impact through a structured map or matrix

• 1. To ensure that only external risks are considered

1. How does risk management help in decision-making?
   

• 1. By eliminating uncertainty in all business operations

• 1. By ensuring every decision is profitable

• 1. By avoiding all decisions that involve any level of risk

• 1. By providing a structured approach to consider potential consequences of different options

1. What cost-related benefit does risk management provide?
   

• 1. Ensuring costs remain fixed regardless of risk factors

• 1. Encouraging organisations to allocate all funds towards risk mitigation

• 1. Increased expenditure on addressing risks after they occur

• 1. Reducing costs by addressing potential issues before they escalate​

1. Why is risk mapping considered an essential tool in risk management planning?
   

• 1. It creates a structured visual representation of all identified risks and categorises them based on their likelihood and impact, helping organisations prioritise resources

• 1. It ensures that no risk remains after the initial planning stage, making all operations completely safe.

• 1. It predicts the exact outcomes of all risks to allow teams to address only the most severe ones.

• 1. It focuses exclusively on external risks to prevent resource wastage on internal issues.

1. Why is it critical for organisations to continuously monitor risks throughout a project’s lifecycle?
   

• 1. To ensure that historical risks are documented for future learning without actively changing the current risk management process.

• 1. To focus on resolving risks identified during the initial phase while disregarding new risks that arise later.

• 1. To finalise all risk-related actions early in the project and avoid revisiting risk management during execution.

• 1. To identify new risks, evaluate the effectiveness of existing risk responses, and ensure the risk management approach adapts to any changes in the organisational or external environment.

What is the purpose of monitoring and controlling risks?

• To document failures for future projects

• To focus on risks that have already occurred

• To identify new risks and ensure the relevance of risk responses

• To develop a single plan for the organisation

1. Which of the following is a tangible benefit of risk management?
   

• 1. Improved decision-making

• 1. Enhanced stakeholder confidence

• 1. Protection of assets

• 1. Building a risk-averse culture

1. Which of the following is NOT a reason why risk management is necessary?

• 1. Building trust with stakeholders

• 1. Enhancing resilience

• 1. Improving decision-making

• 1. Preventing all risks