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Enterprise Risk Management

Total questions: 27

Worksheet time: 20mins

Name
Class
Date
1.

What are the 5 phases of Third Party Risk Management (choose the correct order)?

a)

Planning, Termination, Due Diligence, Contracting, Monitoring

b)

Planning, Due Diligence, Contracting, Monitoring, Termination

c)

Monitoring, Planning, Due Diligence, Contracting, Termination

d)

Contracting, Planning, Due Diligence, Monitoring, Termination

2.

Who is responsible for risk management?

a)

Risk Managers

b)

Top Management

c)

Everyone in the business

d)

Internal Audit

3.

is a tool that helps you visualize the probability vs the severity of the potential risk

(a)  

4.

it measures how much you can withstand negative performance in your investment

(a)  

5.

True or False: Risk management is only about analysing the probability of negative events happening.

a)

True

b)

False

6.
If an individual investor, business, or financial institution cannot meet its short-term debt obligations, it is experiencing:
a)
Country risk
b)
Operational risk
c)
Market risk
d)
Liquidity risk
7.
Operational risk:
a)

summarizes the uncertainties and risks a company faces when it attempts to do its day-to-day business activities within a given field or industry.

b)

is the possibility that an individual or other entity will experience losses due to factors that affect the overall performance of investments in the financial markets.

c)

covers the volatility that may accompany interest rate fluctuations due to fundamental factors, such as central bank announcements related to changes in monetary policy.

d)

covers the changing prices of commodities

8.
When should a risk be avoided?
a)

When the risk event has a low probability of occurrence and low impact

b)

When the risk event is unacceptable -- generally one with a very high probability of occurrence and high impact

c)

When it can be transferred by purchasing insurance

d)

A risk event can never be avoided

9.

What is the purpose of a risk assessment?

a)

To generate more paperwork

b)

Create work for the designated safety officers

c)

Proportion blame in the event of an accident occurring

d)

To evaluate hazards and to minimise the levels of its risk

10.

When do you perform Risk Identification?

a)

At the beginning of a project.

b)

During project planning.

c)

During the whole lifetime of a project.

d)

During project execution.

11.

Deviation from our expectation: it could be positive or negative

a)

Risk Event

b)

Effect

c)

Cause

d)

Risk

12.

Which of the following is not an effect?

a)

We might not deliver our services on time.

b)

We could lose our reputation.

c)

It would help us become productive.

d)

We would fail in achieving our SLA.

13.

Risk appetite is the amount of risk an entity is willing to take entirely. Which of these following statements is TRUE ?

a)

There is fixed amount on risk appetite.

b)

Risk appetites change due to changing market environment.

c)

Risk appetite reflects the attitude towards risk mitigation.

d)

A larger risk appetite indicates that a bank is taking smaller risks.

14.

Every organization has ‘lines of defense’ to protect themselves from risks/threats.

How many lines of defense does an organization typically have?

a)

2

b)

4

c)

3

d)

5

15.

Name the 2nd line of defense in LIB.

a)

Internal Audit

b)

Department’s Risk & Compliance Coordinator

c)

Enterprise Risk Management & Compliance Assurance

d)

External Auditor

16.

What are some of the emerging risks that would have a significant impact on LIB?

I. Cyber risk

II. Reputational risk

III. Regulatory risk

IV. Climate risk

a)

I, IV

b)

I, II, III

c)

II, III, IV

d)

I, II, III, IV

17.

about processes that are designed to be enacted after a disaster has occurred

(a)  

18.

How many players are there in a cricket team?

(a)  

19.

Which is the largest internal organ in the human body?

a)

The Brain

b)

The heart

c)

The Kidney

d)

The Liver

20.

Which animal does not drink water at all?

a)

Camel

b)

Kangaroo rat

c)

Crocodile

d)

Octopus

e)

Starfish

21.

How many hearts does an octopus have?

a)

1

b)

3

c)

2

d)

5

e)

10

22.

Which organ purifies our blood?

a)

Pancreas

b)

Liver

c)

Kidney

d)

Lungs

e)

Heart

23.

I'm tall when I'm young. I'm short when I'm old. Who am I?

a)

Age

b)

Candle

c)

Human being

d)

Tree

24.

Complete this common saying: "Where there's a will, there's _______."

a)

a way

b)

a goal

c)

a road

d)

a widow

25.

is a cyber attack targeting a software vulnerability which is unknown to the software vendor or to antivirus vendors.

a)

zero-day (0day) exploit

b)

Crackers

c)

Hackers

d)

Malware

26.

Which of the following statements about "Think twice, click once" is TRUE?

a)

Do not commit to anything online until you have considered it and the impact on you

b)

Once all points have been considered, reconsider before you act – think before you click!

c)

All of the Choices

d)

None of the above

27.

is a strategic business discipline that support the achievement of an organization of objectives

(a)