Risk Management Quiz

What is the primary goal of risk management?

• To eliminate all risks

• To increase profits

• To identify and minimize potential losses

• To comply with government regulations

Which of the following is NOT a type of risk?

• Financial

• Operational

• Natural

• Imaginary

Which step comes first in the risk management process?

• Risk mitigation

• Risk assessment

• Risk identification

• Risk transfer

What is risk assessment?

• Avoiding all possible risks

• Buying insurance

• Evaluating the probability and impact of risks

• Ignoring minor issues

What is the term for reducing the likelihood or impact of a risk?

• Risk acceptance

• Risk avoidance

• Risk mitigation

• Risk exploitation

Transferring risk often involves:

• Training employees

• Changing processes

• Purchasing insurance

• Ignoring the risk

Which document typically outlines known risks in a project?

• Project schedule

• Risk register

• Work breakdown structure

• Budget report

A low-probability, high-impact risk is best handled through:

• Acceptance

• Monitoring

• Avoidance or transfer

• Ignorance

Which of the following is a qualitative risk analysis method?

• Monte Carlo simulation

• Decision tree analysis

• Risk matrix

• Cost-benefit analysis

SWOT analysis is used in risk management to:

• Determine insurance needs

• Identify strengths, weaknesses, opportunities, and threats

• Design risk mitigation strategies

• Evaluate project budgets