CRMP - Practice Module 8-12

1. What is the purpose of performing a risk health check in an organisation?
   

• 1. To identify the most recent financial records of the company

• 1. To evaluate the effectiveness of current risk management practices and identify areas for improvement

• 1. To ensure that all risks have been eliminated

• 1. To focus solely on assessing compliance with legal standards

1. Which of the following tools is commonly used for evaluating the maturity of risk management processes in an organisation?
   

• 1. Risk Health Check

• 1. Monte Carlo Simulation

• 1. Risk Maturity Models (RMM)

• 1. Decision Trees

1. What is the primary responsibility of senior-level management in risk management?
   

• 1. To eliminate all risks from the organisation

• 1. To develop a strategy for engaging stakeholders and ensure alignment with the overall risk strategy

• 1. To identify all potential risks individually

• 1. To only communicate risk-related issues to the board

1. Which of this is an example of a support-level commitment in risk management?
   

• 1. Developing the risk management framework

• 1. Setting the risk appetite for the organisation

• 1. Communicating risk matters to agreed stakeholders in accordance with organisational values and guidelines

• 1. Allocating resources to manage high-impact risks

1. What is the purpose of using a risk register in the risk management process?
   

• 1. To document only the high-impact risks and their corresponding mitigation strategies

• 1. To track historical financial data of risks

• 1. To categorise and monitor identified risks, including their probability, impact, and mitigation responses

• 1. To prevent any new risks from emerging during the project lifecycle

1. Which tool is most suitable fong the likelihood and impact of a specific risk using a visual representation?
   

• 1. Decision Tree

• 1. Risk Health Check

• 1. Monte Carlo Simulation

• 1. Probability x Impact Matrix

What is one key benefit of effective risk management in a business context?

• Create opportunities for risk-taking in all departments

• Eliminating all possible risks to ensure guaranteed profits

• Protecting assets, reducing costs, and enhancing decision-making through a structured risk assessment process

• Ignoring external risks to focus solely on internal threats

What is a key challenge in fostering a strong management culture within an organisation?

• Ensuring there is a perfect understanding of risk management tools among all employees

• Encouraging management and employees to take risks without fear of consequences

• Overcoming resistance to change and ensuring engagement with risk management practices across all levels

• Creating a culture where only senior leaders handle risk management

Why is communication during the risk management process?

• To ensure that no risks are encountered during the project

• To ensure all stakeholders are informed of identified risks, opportunities, and the effectiveness of mitigation measures

• To delegate risk management responsibilities to external parties

• To create new risks by discussing them openly

To proactively address the Technical Challenges risk (potential delays in software integration), which specific analytical tool should the project team use to trace the various component or process failures that could lead to the top-level delay event?

• Risk Maturity Model

• Fault Tree Analysis (FTA)

• Communication Matrix

• Earned Value Management (EVM)