WorksheetsINS510 Risk Management
Total questions: 80
Worksheet time: 3600secs
A document you use to capture all known risks is called:
Risk Log
Risk Register
Risk List
Risk Diary
As a part of your project, you need to organize a conference. You learn that in the place that you rented there’s a 70% chance of a tropical storm on the selected dates. How should you handle such risk?
Change the location of the conference.
Buy insurance to cover possible damage.
Book another place nearby to mitigate the risk of the first location being unavailable due to the storm.
Inform all participants of the possible storm.
Who should be involved in Risk Management activities?
Only Project Team.
Only Project Manager.
As many stakeholders as practical.
All stakeholders except clients.
You acquired an expensive piece of equipment for your project. It is known to be sensitive and fragile in work. Several tasks that require this equipment are on a critical path. What’s the BEST action you can do to improve the project’s chances for success?
Buy insurance to cover the costs of repairs.
Hire a technical support team to quickly fix the equipment if needed.
Find a good expert to operate the equipment.
There’s nothing you can do.
You are on the call with clients. They say the vendor team they hired to create designs is behind schedule. What should you do?
State that your project is also behind the schedule because of it.
Log the risk into the Risk Register to assess impact.
Do nothing. It’s not your problem.
Contact the vendor to help them out.
After reviewing Risk Register you see two critical risks that you anticipate during the next week. What should you do with this knowledge?
Do nothing. Your Risk Register is shared with the team and stakeholders.
Reach out to the stakeholders and the responsible person with a reminder.
Sort the correct risk management process in order.
i. Risk Planning
ii. Risk Analysis
iii. Risk Identification
iv. Risk Monitoring
i, ii, iii, iv
ii, i, iii, iv
iii, ii, i, iv
iii, i, ii, iv
Choose the BEST answer to represent the activities in Risk Analysis
Identify project, product and business risk
Assess the likehood and consequences of risk might occur.
Draw up the action plan to minimize the effects of risk
Review and check the risk assessment thought the project.
Analysis the probability of risk based on the situation below:
“The organization is restructured so the difference management are responsible for the project”
Very Low
Low
Moderate
High
_____requires determining the possible problem, or cause, of the risk.
Risk identification
Risk planning
Risk assessment
Risk monitoring and control
* Reduce anxiety or stress
* Some loss exposures can make greater worry for the risk manager and key
executives.
The above mentioned statements refer to _________________ ?
Pre-loss objective
Post-loss objective
Post-loss refer to ___________________?
Before a loss occurs
After a loss occurs
During a loss occurs
Risk is measurable
True
False
Pure risk is a type of risk with the possibility of good outcomes
True
False
Which of the following is not the objectives of risk management
To gain competitive advantages
To minimise losses
To gain financial or non-financial benefits
To avoid problem
Which of the following is not the method in risk reduction
Acceptance
Pooling
Minimisation
Hedging
A common example of risk transfer is insurance.
True
False
When the existing risks are change or new risks are identified, the risk will be added to ___________________for categorisation purposes
Risk identification
Risk assessment
Risk planning
Risk monitoring
The final strategy in risk is
Transfer/Sharing
Accept
Reduce
Avoid
AVOID is changing the likelihood. Changing the consequences (impact)
True
False
TRANSFER is sharing the risk with another party or parties (including contracts and risk financing)
True
False
Some useful methods are:
• Brainstorming
• Checklist of complaints
• Incidence reporting data
Risk Identification
Risk Analysis
Risk Evaluation
Risk Awareness
Qualitative risk analysis
rates or scores risk based on the perception of the severity and likelihood
of itsconsequences
True
False
Having insurance transfers the risk from the ______ to the ______.
individual, insurance company
insurance company, individual
homeowner, renter
renter, homeowner
The technique of assessing, minimizing, and preventing
accidental loss to a business, as through the use of insurance, safety measures, etc.
accidental loss insurance
business management
risk management
auto insurance
_______________risk that is unavoidable, can result in a profit or loss.
Inflation
Speculative
Pure
Income
______________is the failure to exercise reasonable care.
Omission
Oversight
Laziness
Negligence
The notion to which an event is probable to occur is known as
Likelihood
Vulnerabilities
Threat
Impact
A risk matrix is
A 2D grid that helps us to visualise the severity of any risk
A List of risks and their strategies
A rating of each risk
None
Examples of cyber risk include
cybercrime
data breaches/leaks
power outages
All of the above
On the digital matrix, likelihood is
how bad/severe the risk is.
how possible it is for the risk to happen.
the effect/consequence of the risk.
when the risk will happen.
What is the purpose of a risk assessment?
To generate more paperwork
Create work for the designated safety officers
Proportion blame in the event of an accident occurring
To evaluate hazards and to minimise the levels of its risk
Risk can be calculated as:
Likelihood x Consequence
Severity x Consequence
Consequence + Likelihood
Uncertainty / Impact
Which of the following was not a characteristic of Pure Risk?
The category of risk that cannot be controlled
Pure risks involve the probability or possibility of loss with no chance of gain
Pure risks are generally insurable
All of the above
Why is risk identification an essential step in the risk management process?
It allows for the transfer of risk to external parties
It helps in understanding the potential impact of risks
It eliminates all risks from the organization
It increases shareholder value
Which risk response strategy involves taking actions to reduce the likelihood or impact of a risk?
Acceptance
Avoidance
Mitigation
Transference
Which risk response strategy involves sharing risks with a third party?
Risk acceptance
Risk avoidance
Risk transfer
Risk mitigation
Which risk management process involves assessing the probability and impact of risks?
Risk identification
Risk response planning
Risk analysis and assessment
Risk monitoring and control
Why is risk management considered crucial for a business?
To eliminate all potential risks immediately.
To enhance the probability of success and growth.
To avoid decision-making processes.
To focus solely on high-priority risks.
What is the primary advantage of identifying and mitigating risks in the business through risk management?
Immediate elimination of all risks.
Increased chances of informed decision-making.
Complete control over uncontrollable factors.
Dependence on unpredictable outcomes.
Risk and uncertainty are one and same.
True
False
Which of these function are "NOT" a part of risk process.
Identification of risk
Risk Analysis
Risk Evaluation
Generating Profit
What is risk transfer and how does it work?
Risk transfer is the process of sharing the financial burden of a potential loss between multiple parties.
Risk transfer is the process of avoiding the financial burden of a potential loss altogether.
Risk transfer is the process of increasing the financial burden of a potential loss for one party.
Risk transfer is the process of shifting the financial burden of a potential loss from one party to another.
Give an example of a preventive measure for reducing financial risks.
Diversifying investments
Borrowing money to invest in high-risk ventures
Investing all savings in a single stock
Ignoring market trends and fluctuations
What are the benefits of conducting regular risk assessments?
Risk assessments only benefit large organizations and are not necessary for small businesses.
Regular risk assessments help identify potential risks and vulnerabilities in a timely manner, allowing organizations to implement appropriate controls and mitigation strategies.
Regular risk assessments are time-consuming and unnecessary.
Conducting risk assessments increases the likelihood of security breaches.
Discuss the various strategies for risk response planning.
Escalating the risk
Ignoring the risk
Avoiding, transferring, mitigating, or accepting the risk
Sharing the risk
What is the role of a risk owner in risk response planning?
Identifying potential risks
Creating a risk management plan
Implementing the chosen risk response and ensuring its effectiveness
Monitoring risk factors
Explain the concept of risk mitigation and provide examples.
One example of risk mitigation is implementing fire safety measures in a building to reduce the risk of fire hazards.
Implementing safety measures only after an accident has occurred
Investing in high-risk stocks without diversifying the portfolio
Ignoring potential risks and hoping for the best
What are the potential consequences of not having a proper risk response plan in place?
Ability to effectively manage and mitigate risks
Increased likelihood of negative impacts from risks, inability to effectively manage and mitigate risks, and potential financial and reputational damage.
No financial or reputational damage
Decreased likelihood of negative impacts from risks
Low-frequency, low-severity loss exposures are best handled by
Avoidance
Insurance
Retention
Loss reduction
Which of the following types of loss exposures are best handled by the use of avoidance?
low-frequency, low-severity loss exposures
low-frequency, high-severity loss exposures
high-frequency, low-severity loss exposures
high-frequency, high-severity loss exposures
A website business that carries out regular staff training on the data protection principles .
Its risk management strategy is to:
Transfer
Accept
Reduce
Avoid
A chemical business subcontracts the disposal of hazardous waste to an expert waste management company.
The risk management strategy in the scenario is to:
Transfer
Accept
Reduce
Avoid
Which of the following is a response category to a threat?
Accept
Reduce
Avoid
All of these
Keeping staff happy by paying good salaries and giving them good working conditions is a way to
reduce the IMPACT of the risk of losing staff during a project
reduce the PROBABILITY of the risk of losing staff during a project
Risk Description -
Loss or damage goods in transit points
Contingency Plan: Advise customers of the existence of difficulties during the transportation of goods. Goods in transit insurance protects against all risks during the transportation of goods.
Avoid
Reduce/
Mitigate
Transfer/
Share
Accept
Risk Description - Staff sickness absences
Contingency Plan: Reorganize the work in such a way that there is no overlapping or gaps in the production process, in order that all can be aware of their own responsibilities and the rest of the staff.
Avoid
Reduce/
Mitigate
Transfer/
Share
Accept
Risk Description - Defect materials
Contingency Plan: Replace defective materials asap with others in perfect condition, ensuring that they are of recognized quality & effectiveness.
Avoid
Reduce/
Mitigate
Transfer/
Share
Accept
Risk Description - Organizational restructuring
Contingency Plan:
Prepare a document that demonstrates to the company management the important of the project for the business interests and objectives.
Avoid
Reduce/
Mitigate
Transfer/
Share
Accept
Risk Description - IT system failure
Contingency Plan:
Considering the possibility of replacing current information systems with modern systems.
Avoid
Reduce/
Mitigate
Transfer/
Share
Accept
Having an agency that can be called upon to find replacement staff to hire is a way to
reduce the IMPACT of the risk of losing staff during a project
reduce the PROBABILITY of the risk of losing staff during a project
Because the cost can be priced into the firm’s products and passed along to customers, the decision is to
Accept the risk.
Avoid the risk.
Mitigate the risk.
Transfer the risk
