RM&CG_W3_Risk Assessment

What is the primary purpose of risk assessment?

• To eliminate all risks in an organization

• To identify and rate significant risks facing an organization

• To increase financial profits

• To avoid legal compliance

Tesla is considering expanding into a new market. To assess the risks, the company decides to use a qualitative risk assessment technique. Which of the following would be the most appropriate method?

• Conducting a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats

• Running a Monte Carlo simulation to estimate financial risks

• Using HAZOP to analyze potential equipment failures

• Applying Failure Mode Effects Analysis (FMEA) to assess manufacturing defects

What is the difference between top-down and bottom-up risk assessment approaches?

• Top-down focuses on operational risks, while bottom-up focuses on strategic risks

• Bottom-up considers only financial risks, while top-down considers all risks

• Top-down is led by senior management, while bottom-up involves employees at various levels

• There is no difference; they are interchangeable terms

Which of the following is NOT a response option for hazard risks under the 4Ts framework?

• Tolerate

• Expand

• Transfer

• Terminate

Which factor is NOT typically considered in a risk matrix?

• Risk likelihood

• Risk impact

• Risk owner’s preference

• Risk perception

Which of the following describes a significant risk that requires senior-level attention?

• Low impact, low likelihood

• High impact, high likelihood

• Moderate impact, low likelihood

• Small impact, possible occurrence

What is the primary purpose of business continuity management (BCM)?

• To prevent any form of business risk

• To ensure ongoing operations during disruptions

• To maximize business profits in the short term

• To transfer risks to external parties

Which of the following is a key benefit of using a risk matrix in risk management?

• It ensures compliance with all regulatory requirements

• It provides a detailed financial analysis of risks

• It helps prioritize risks based on their severity and likelihood

• It eliminates all potential risks in a project

In risk management, what is the primary goal of a risk response plan?

• To completely avoid all risks

• To identify and implement strategies to mitigate risks

• To increase the likelihood of risk occurrence

• To focus solely on financial risks

What is a common method for identifying potential risks in a project?

• Brainstorming sessions with stakeholders

• Relying solely on financial reports

• Ignoring minor issues

• Focusing only on past risks