Risk Management Worksheet

What is the first step in effective risk management?

• Hiring consultants

• Risk assessment

• Increasing prices

• Cutting staff

Which of the following is NOT a common strategy for managing risk?

• Standardization

• Automation

• Guesswork

• Continuous monitoring

What does contingency planning focus on?

• Creating employee surveys

• Handling unexpected failures

• Increasing profits

• Reducing salaries

Financial risk is primarily associated with:

• Company reputation

• Legal regulations

• Monetary loss or instability

• Technology failures

A good way to manage financial risk is to:

• Avoid all investments

• Monitor financial statements regularly

• Eliminate suppliers

• Reduce product quality

Operational risk is related to:

• Product marketing

• Day-to-day business activities

• CEO decisions

• Branding strategies

Which of the following can help reduce operational risks?

• Ignoring customer feedback

• Flexible procedures

• Clearly documented SOPs

• Reducing team communication

Strategic risk often results from:

• Customer complaints

• Poor planning and decision-making

• Data breaches

• Process automation

A company can minimize strategic risk by:

• Avoiding all changes

• Relying on instinct

• Conducting market research

• Ignoring trends

Compliance risk arises when a company:

• Has many suppliers

• Uses outdated software

• Violates laws or regulations

• Has poor sales