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