Operations Risk Management WebXam Review

Which of the following is an example of a routine operational failure?

• Fraud

• Execution error

• Acts of nature

• Conscious violation of professional ethics

What is a non-routine operational failure?

• Processing failure

• Accident

• Fraud

• Execution error

Which of the following factors can increase the risk of operational failure?

• Well-documented procedures

• Lack of employee training

• Use of automation

• Regular audits

Which strategy is commonly used to reduce the risk of routine operational failures?

• Ignoring errors

• Implementing checklists

• Reducing communication

• Increasing manual processes

Which of the following is an operational risk factor associated with launching a new product?

• Established market presence

• Familiar processes

• Unfamiliar systems

• Routine tasks

What is the importance of planning for catastrophic risk in operations?

• To increase daily workload

• To ensure business continuity during emergencies

• To reduce employee benefits

• To avoid routine tasks

Compare the costs of routine operational failures with non-routine operational failures.

• Routine failures usually have higher costs than non-routine failures.

• Non-routine failures often result in higher costs and more severe consequences.

• Both have the same costs.

• Routine failures are always more severe.

Identify a factor that could increase the risk of both routine and non-routine operational failures in a business.

• Regular employee training

• Outdated technology

• Clear communication channels

• Effective supervision

Explain how automation can help reduce operational risk.

• By increasing manual errors

• By standardizing processes and reducing human error

• By making processes more complex

• By eliminating the need for procedures

Which of the following is a strategy for performing operational duties during an emergency?

• Ignoring established protocols

• Developing alternative procedures

• Relying solely on routine processes

• Waiting for the emergency to end