Enterprise Risk Management Quiz

What is an example of operational risk?

• A company struggling with cash flow

• A competitor launching an innovative product

• A social media scandal causing customer backlash

• A supply chain disruption delaying production

Which risk is associated with changes in market conditions?

• Strategic Risk

• Financial Risk

• Reputational Risk

• Operational Risk

What type of risk involves uncertainties in financial markets?

• Compliance Risk

• Operational Risk

• Financial Risk

• Strategic Risk

Which risk can damage an organization's reputation?

• Operational Risk

• Compliance Risk

• Strategic Risk

• Reputational Risk

What is an example of compliance risk?

• A company struggling with cash flow

• A supply chain disruption delaying production

• A company being fined for violating data protection laws

• A competitor launching an innovative product

What is risk prevention and control?

• Shifting the financial impact of risks to another party

• Implementing policies to minimize risks

• Eliminating activities that expose the company to risks

• Accepting the risk and budgeting for potential losses

What is an example of risk transfer?

• Choosing not to enter a volatile market

• Conducting cybersecurity training

• Setting aside emergency funds

• Purchasing property insurance

What does risk retention involve?

• Eliminating activities that expose the company to risks

• Accepting the risk and budgeting for potential losses

• Implementing policies to minimize risks

• Shifting the financial impact of risks

What is an example of risk avoidance?

• Choosing not to enter a highly volatile foreign market

• Conducting cybersecurity training

• Purchasing property insurance

• Setting aside emergency funds

Which risk is related to non-compliance with laws?

• Strategic Risk

• Operational Risk

• Financial Risk

• Compliance Risk