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risk management

Total questions: 91

Worksheet time: 2hrs 31mins

Name
Class
Date
1.

The Key processes of Project Risk Management are:

a)

Plan Risk Management, Identify Risks, Assess Risks, Mitigate Risks,Transfer Risks, and Document Outcomes.

b)

Identify Risks, Plan Risk Management, Evaluate Risks, Develop Risk Responses,Mitigate Risks, and

Document Results.

c)

Identify Risks, Perform Qualitative Risk Validation, Perform Quantitative Impact Assessment, Develop Risk Response Strategies,Document Response Strategies, and Monitor Risk Responses.

d)

Plan Risk Management, ldentify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, Implement Risk Responses,and Monitor Risks.

2.

Strategies typically used to deal with threats or risks that may have negative impacts on project objectives if they occur include all of the following EXCEPT:

a)

Interpreting

b)

Avoiding

c)

Transferring

d)

Mitigating

3.

The primary output of the Identify Risks process is the:

a)

Risk register.

b)

Expected monetary value of the risk events.

c)

List of corrective actions.

d)

Risk mitigation plan.

4.

All of the following are inputs to the Identify Risks process EXCEPT:

a)

Risk management plan.

b)

Scope baseline.

c)

Risk mitigation plan.

d)

Quality management plan.

5.

As an output of the Perform Quantitative Risk Analysis process, the risk register is updated. These updates generally include:

a)

Prioritized list of quantified risks.

b)

Qualitative analysis of the threats to ignore and opportunities to accept.

c)

Checklists, corrective actions, and qualified decision trees.

d)

Direction, resources, and contingency costs.

6.

What is risk management?

a)

Looking both ways before crossing a 2 lane highway.

b)

Auto Insurance

c)

The forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact.

d)

The ability to plan for the future.

7.

Successful risk management requires:

a)

Misunderstanding the benefits of risk management

b)

Inadequate time for risk identification

c)

Use of non-standard approach to access risk

d)

Stakeholder responsibility

8.

_____requires determining the true problem, or cause, of the risk.

a)

Risk identification

b)

Risk planning

c)

Risk assessment

d)

Risk monitoring and control

9.

Reserves and contingency plans would be used in which risk strategy?

a)

Avoidance

b)

Accept or ignore

c)

Mitigation

d)

Transfer

10.

What is the correct order of the stages in The Project Risk Management Process Cycle ?

a)

Establish, Monitor & Review, Evaluate, Treat, Analyze

b)

Establish, Identify, Analyze, Evaluate, Treat, Monitor & Review

c)

Identify, Analyze, Evaluate, Establish, Monitor, Treat

d)

Monitor & Review, Establish, Identify, Analyze, Evaluate, Treat,

11.

A risk matrix is

a)

A 2D grid that helps us to visualise the severity of any risk

b)

A List of risks and their strategies

c)

A rating of each risk

d)

None

12.

What is a risk?

a)

Risk is losing something of value.

b)

Risk is gaining something of value.

c)

Risk is the potential to lose or gain something of value.

13.

Risk management is

a)

an incident where information is stolen or taken from a system without knowledge

b)

the process of minimizing or reducing harm from risk.

c)

the simulation of human intelligence in machines that are programmed to think like humans

d)

a process that deals with investments

14.

The risk of obsolescence is

a)

a company losing data through data breaches/leaks.

b)

damage to reputation through social media

c)

the danger of a process/product/technology becoming out-of-date within a short space of time.

d)

None

15.

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

16.
Risk Management includes all of the following processes except:
a)
Risk Monitoring and Control
b)
Risk Identification
c)
Risk Avoidance
d)
Risk Response Planning
17.
Risk management can be defined as the art and science of ___________risk factors throughout the life cycle of a project.
a)
researching, reviewing, and acting on
b)
identifying, analyzing, and responding to
c)
reviewing, monitoring, and managing
d)
identifying, reviewing, and avoiding
18.
A risk response which involves eliminating a threat is called:
a)
Mitigation
b)
Deflection
c)
Avoidance
d)
Transfer
19.
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
20.
Losses arising due to a risk exposure retained or assured is known as ______________
a)
Risk Reduction
b)
Risk Financing
c)
Risk Retention
d)
Risk Sharing
21.
The measures aimed at avoiding,eliminating or reducing the chances of loss production is covered by ______________
a)
Risk Control
b)
Risk Retention
c)
Risk Avoidance
d)
Risk Financing
22.
The possibility that actual results may differ from predicted results is known as ______________.
a)
Risk
b)
Uncertainty.
c)
Norms
d)
Hazards
23.
Risk retention means ______________
a)
Saving money to pay for the losses
b)
Accepting and agreeing to finance the loss oneself
c)
Not taking up any activity which is risky
d)
Insuring the risk
24.
The use of fire-resistance materials when constructing a building is an example of____
a)
Risk transfer
b)
Risk Control
c)
Risk Avoidance
d)
Risk Retention
25.

A process that involves prioritizing risks for further action or analysis by assessing the impact and the probability of occurrence is called

a)

Qualitative Risk Analysis

b)

Risk Brainstorming

c)

Quantitative Risk Analysis

d)

Risk Retrospective

26.

A document you use to capture all known risks is called:

a)

Risk Log

b)

Risk Register

c)

Risk List

d)

Risk Diary

27.

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.

28.

Who should be involved in Risk Management activities?

a)

Only Project Team.

b)

Only Project Manager.

c)

As many stakeholders as practical.

d)

All stakeholders except clients.

29.

After you performed Qualitative Risk Analysis you need to create:

a)

A prioritized list of risks.

b)

List of risks for additional analysis and investigation.

c)

List of urgent risks

d)

All the answers.

30.

Risk and Return have-------relationship with each other.

(a)  

31.

Which is NOT a type of Legal risk?

a)

Litigation risk

b)

Contract Risk

c)

Regulatory Risk

d)

Risk Process

32.

Risks that focuses or arises from the services we deliver for day to day or for less than a year.

a)

Compliance Risk

b)

Operational Risk

c)

Strategic Risk

d)

Technological Risk

33.

Refers to risks related to laws and regulations, company policies within which the organization operates.

a)

Compliance Risk

b)

Technological Risk

c)

Operational Risk

d)

Strategic Risk

34.

Uncertain thing that may or may not happen

a)

Risl

b)

Cause

c)

Effect

d)

Risk Event

35.

The technique of assessing, minimizing, and preventing

accidental loss to a business, as through the use of insurance, safety measures, etc.

a)

accidental loss insurance

b)

business management

c)

risk management

d)

auto insurance

36.

The first step in the enterprise risk management process is

a)

risk analysis

b)

implementing and monitoring the program

c)

risk identification

d)

selection of risk treatment measures

37.

This is where no action to mitigate or reduce the risk.

a)

Tolerating

b)

Treating

c)

Resourcing

d)

Responding

38.

It reduces risk causing or minimizing its impact to its occurence.

a)

Responding

b)

Resourcing

c)

Treating

d)

Terminating

39.

The simplest and most often ignored method of dealing risk.

a)

Treating

b)

Terminating

c)

Reaction Planning

d)

Reporting

40.

Identify which one among the choices belongs to 7R's of Risk Managament.

a)

Revision

Reinforcement

Reaction

Reporting

Reviewing

Reapproachment

Revitalization

b)

Repitition

Ranking

Responding

Resourcing

Reaction

Reporting

Reviewing

c)

Recognition

Ranking

Responding

Resourcing

Reaction

Reporting

Reviewing

d)

Recommendation

Recognition

Ranking

Responding

Rewarding

Reacting

Revision

41.

Risk that comes from dangerous situations in the workplace.

a)

Management

b)

Opportunity-Based Risk

c)

Uncertainty-Based Risk

d)

Hazard-Based Risk

42.

Which of the following is not the objectives of risk management

a)

To gain competitive advantages

b)

To minimise losses

c)

To gain financial or non-financial benefits

d)

To avoid problem

43.

In internal control, risk management and assessment is the responsibility of

a)

Board of Directors

b)

Management Committee

c)

The Audit Committee

d)

All of the above

44.

What is the primary goal of risk management?

a)

To eliminate all risks entirely

b)

To identify and assess potential risks

c)

To accept all risks without mitigation

d)

To increase the likelihood of risks occurring

45.

What is a common technique for qualitative risk assessment?

a)

Monte Carlo simulation

b)

Sensitivity analysis

c)

Risk matrix

d)

Expected monetary value analysis

46.

What does the term "contingency planning" refer to in risk management?

a)

Preparing for and responding to potential risks

b)

Eliminating all risks entirely

c)

Accepting all risks without any response

d)

Monitoring risks without taking action

47.

What is the primary purpose of a Risk Management Plan?

a)

To document resolved issues

b)

To prepare for unforeseen events

c)

To outline strategies for proactive risk management

d)

To respond to known risks

48.

Which risk response strategy involves shifting the risk to another party, such as through insurance?

a)

Risk avoidance

b)

Risk transfer

c)

Risk acceptance

d)

Risk mitigation

49.

What does the term "likelihood" refer to in risk assessment?

a)

The potential impact of a risk event

b)

The frequency or probability of a risk event occurring

c)

The severity of a risk event

d)

The cost associated with a risk event

50.

What is the primary objective of risk monitoring and review?

a)

To identify new risks

b)

To eliminate all existing risks

c)

To transfer all risks to external parties

d)

To accept all risks without action

51.

In the context of risk management, what is the purpose of a risk register?

a)

To eliminate all identified risks

b)

To provide a list of all project stakeholders

c)

To document and track identified risks

d)

To transfer all project risks to a third party

52.

Having an understanding  of what risks exist, what impact they can  have, and how to deal with them, but also  constantly keeping an open eye for new  risks by putting plans and contingencies in  place.

a)

Risk Evaluation

b)

Risk Awareness

c)

Risk Mitigation

d)

Risk Analysis

53.

Detect change in external or internal context:

a) Analysis, lessons learned, continuous

b) Analysis, lessons learned, continuous improvement

c) Identify emerging risks

a)

Risk Contigency Planning

b)

Risk Tracking & Reporting

c)

Risk Identification

d)

Risk Mitigation

54.

Some useful methods are:

• Brainstorming

• Checklist of complaints

• Incidence reporting data

a)

Risk Identification

b)

Risk Analysis

c)

Risk Evaluation

d)

Risk Awareness

55.

Why we should manage operational risks? Please choose 3 answers *

a)

Minimise operational losses

b)

Achieve business objectives

c)

Better business decision

d)

Common industry practice

e)

Reduce tax

56.

What is BCM?

a)

Business Compliance Management

b)

Business Contingency Management

c)

Banking Continuity Management

d)

Business Continuity Management

57.

To understand operational risk, one should understand..

a)

Operational process, corporate environment and the affecting factors

b)

Operational process only

c)

The affecting factors and regulations only

d)

No need to understand others, it just needs to understand the operational risk

58.

What are the affecting factors which influence operational activities as well as the Operational risk..

a)

Nature of the company

b)

Laws and regulations

c)

Stekaholder Value

d)

All the above three factors

59.

When would Risk Management be involved in Operational Process ?

a)

At the begining of execution process

b)

At the first strategic decision process

c)

At the first initial strategic plan

d)

During audit process and BOC meeting

60.

Based on market best practice, which method provides foundation and framework for linking and integrating Operational risk to enterprise Risk Management..

a)

ISO9001

b)

ISO31000

c)

ISO37000

d)

ISO26000

61.

What is the purpose of performing a SWOT Analysis?

a)

Gives the management team a broader view on the potential opportunity

b)

Evaluates whether the business venture is a good idea.

c)

Identifies internal and external factors that may affect the business future performance.

d)

Access an organization’s performance

62.

Risk thresholds are determined to help:

a)

The team rank the project risks

b)

The project manager estimate the project

c)

The team schedule the project

d)

Management know how other managers will act on the project

63.

During which risk management process is a determination made to transfer a risk?

a)

Identify Risks

b)

Implement Risk Responses

c)

Plan Risk Responses

d)

Monitor Risks

64.
Why Risk Management is Important? Which answer is incorrect? 
a)
Minimizes threats, maximizes opportunities and optimizes the achievement of project objectives.
b)
Reduce the number of threats that materialize into problems and minimize the effects of those that do occur
c)
Failing to manage risk will result in more problems, higher benefits and a higher chance of project success.
d)
Results in more opportunities being captured proactively and turned into positive benefits for the project.
65.
What are the four possible options when responding to risk?
a)
Avoid, Transfer, Accept, Mitigate
b)
Accept, Mitigate, Evade, Transfer
c)
Evade, Receive, Transfer, Avoid
d)
Mitigate, Avoid, Evade, Transfer
66.
Identifying Alternative strategies’ is also knowing as a
a)
Contingency plan
b)
Emergency plan
c)
Back-up plan
d)
Incident plan
67.
Which factor is not normally considered in risk control?
a)
Cost
b)
Quality
c)
Effort
68.

What is risk identification?

a)

The process of identifying and documenting potential risks that could affect a project or organization.

b)

The process of transferring risks to another party.

c)

The process of ignoring potential risks and focusing only on current issues.

d)

The process of mitigating risks that have already occurred.

69.

What are the challenges faced during the risk identification process?

a)

Lack of data, subjective judgments, incomplete information, and biases.

b)

Lack of expertise, time constraints, lack of stakeholder involvement, and conflicting priorities.

c)

Limited resources, lack of communication, lack of risk awareness, and resistance to change.

d)

Inconsistent risk assessment criteria, lack of risk management framework, lack of risk identification tools, and poor risk reporting.

70.

Realigning the weightings of assets to maintain asset allocation.

a)

Rebalancing

b)

Rebranding

c)

Reciprocation

d)

Recall

71.

This refers to the strategies that minimize the risks associated with a business's operations.

a)

Avoiding the risk

b)

Ignoring the risk

c)

Risk Management

d)

Business Management

72.

A market segment is the same thing as _________ __________

a)

target market

b)

sports marketing

c)

entertainment marketing

d)

marketing strategy

73.

When a business targets people based on where they live, this is

a)

demographics

b)

geographic

c)

psychographics

74.

When a business focuses on customer's age, income, gender, and marital status, this is called

a)

demographics

b)

psychographics

c)

geographic

75.

What is risk transfer and how does it work?

a)

Risk transfer is the process of sharing the financial burden of a potential loss between multiple parties.

b)

Risk transfer is the process of avoiding the financial burden of a potential loss altogether.

c)

Risk transfer is the process of increasing the financial burden of a potential loss for one party.

d)

Risk transfer is the process of shifting the financial burden of a potential loss from one party to another.

76.

Give an example of a preventive measure for reducing financial risks.

a)

Diversifying investments

b)

Borrowing money to invest in high-risk ventures

c)

Investing all savings in a single stock

d)

Ignoring market trends and fluctuations

77.

Insurance is a method of

a)

risk elimination.

b)

risk mitigation.

c)

risk outsourcing.

d)

risk acceptance.

78.

Of the following risk management strategies, the one that

aims at minimizing both the severity and the likelihood of

loss is

a)

avoidance.

b)

reduction.

c)

transference.

d)

retention.

79.

A hazard is

a)

A situation involving chemical fumes

b)

Has the potential to cause harm

c)

Both physical and psychological in nature

d)

All of the above

80.
Which of the following is an output of the Perform Qualitative Risk Analysis process?
a)
Project Scope Statement
b)
Project Management Plan Updates
c)
Stakeholder Register
d)
Project Documents Updates
81.

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.

82.

What is the correct order of the stages in The Project Risk Management Process Cycle ?

a)

Assess, Plan, Respond, Repeat, Close

b)

Assess, Identify, Plan, Monitor, Respond

c)

Identify, Assess, Plan Response, Monitor & Respond, Close

d)

Plan, Identify, Assess, Respond, Close

83.

Which of these is NOT a possible strategy for responding to a project risk

a)

Transfer

b)

Avoid

c)

Mitigate

d)

Accept

e)

Redefine

84.

Risk thresholds are determined to help:

a)

The team rank the project risks

b)

The project manager estimate the project

c)

The team schedule the project

d)

Management know how other managers will act on the project

85.

During which risk management process is a determination made to transfer a risk?

a)

Identify Risks

b)

Implement Risk Responses

c)

Plan Risk Responses

d)

Monitor Risks

86.

Buying insurance is one example of:

a)

Risk spreading

b)

Risk transfer

c)

Risk avoidance

d)

Risk reduction

87.
What is Risk Management?
a)
The deliberate approach or a real-time approach or to control risks.
b)
The process of identifying, assessing, and controlling risks arising from operational factors and making decisions that balance risk cost with mission benefits. 
c)
The ability to manage risks and implement controls necessary to accomplish the mission.
d)
None of the above
88.

The following are risk management techniques, EXCEPT:

a)

Avoid

b)

Control

c)

Reduce

d)

Transfer

89.
Worried about theft on campus, Sophie did not buy a laptop or printer to bring to campus. She figured she could use the campus labs instead.
a)
Avoid
b)
Reduce
c)
Accept
d)
Transfer
90.

Works with numbers, statistics, formulations, and data

a)

QUALITATIVE

b)

QUANTITATIVE

91.

Which is the correct flow of Risk Assessment?

a)

Evaluation > Identification > Analysis

b)

Analysis > Evaluation > Identification

c)

Identification > Analysis > Evaluation

d)

Identification > Analysis > Treatment