wayground logo

Free Printable Worksheets

NEW

Font size

S
M
L
XL
Worksheets

Finals_Risk Management

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

What is risk management?

a)

Avoiding all business risks

b)

The process of identifying, assessing, and controlling risks

c)

Creating business risks to gain profit

d)

Ignoring minor risks

2.

Which of the following is NOT a principle of risk management?

a)

Risk identification

b)

Risk ignoring

c)

Risk assessment

d)

Risk treatment

3.

Which of the following is a key element of risk management?

a)

Random guesses

b)

Ignoring feedback

c)

Monitoring and review

d)

Increasing uncertainty

4.

Which of these is a correct step in the risk management process?

a)

Hiding risk

b)

Risk assessment

c)

Risk denial

d)

Assumption of risk

5.

The term "risk" can be best defined as:

a)

A guaranteed profit

b)

Uncertainty of outcomes

c)

Success without planning

d)

Predicted failure

6.

Which body's requirements should you be familiar with in enterprise-wide risk management?

a)

WHO

b)

UNESCO

c)

SEC

d)

UN

7.

What is the final step in the risk management process?

a)

Risk creation

b)

Risk mitigation

c)

Monitoring and review

d)

Avoidance of responsibility

8.

Which of the following is NOT part of risk treatment?

a)

Accepting risk

b)

Sharing risk

c)

Ignoring risk

d)

Reducing risk

9.

Which of these is NOT a relevant risk terminology?

a)

Hazard

b)

Exposure

c)

Dividend

d)

Vulnerability

10.

Enterprise-wide risk management helps organizations to:

a)

Eliminate all risks

b)

Improve decision-making

c)

Avoid planning

d)

Ignore market trends

11.

Which is NOT a component of market risk?

a)

Product Risk

b)

Competitor Risk

c)

Pricing Risk

d)

Employee Fraud

12.

Product complexity is categorized under:

a)

Financial risk

b)

Market risk

c)

Operations risk

d)

Liquidity risk

13.

Which of these is considered a competitor risk?

a)

Product packaging

b)

Research and development

c)

Market share

d)

Delivery of warranties

14.

Which of the following is an operations risk?

a)

Interest rate volatility

b)

Market strategy

c)

Technological obsolescence

d)

Pricing strategy

15.

An example of integrity risk includes:

a)

Currency fluctuation

b)

Employee fraud

c)

Product packaging

d)

Warranty delivery

16.

Health and safety fall under which risk category?

a)

Market risk

b)

Financial risk

c)

Operations risk

d)

Product risk

17.

Foreign currency fluctuations are classified as:

a)

Market risk

b)

Financial risk

c)

Operational risk

d)

Environmental risk

18.

Process stoppage is a form of:

a)

Market risk

b)

Financial risk

c)

Operational risk

d)

Product risk

19.

Which of these is an environmental risk?

a)

Health and safety

b)

Liquidity

c)

Technological innovation

d)

Pollution or natural hazards

20.

After sales service failure is part of:

a)

Market risk

b)

Product risk

c)

Operations risk

d)

Financial risk

21.

What determines financial risk in a firm?

a)

Product design

b)

Capital structure

c)

Employee count

d)

Environmental policies

22.

What is financial leverage?

a)

Use of equity only

b)

Risk-free investment

c)

Use of fixed interest payments

d)

Elimination of interest rates

23.

Financial leverage increases:

a)

Operating income

b)

Certainty of profits

c)

Income variability

d)

Product complexity

24.

Which of the following causes bond prices to decline?

a)

Rising interest rates

b)

Falling inflation

c)

Lower market share

d)

Increased productivity

25.

Interest rate risk most commonly affects:

a)

Employee salaries

b)

Production costs

c)

Bond price movements

d)

Product packaging

26.

An increase in interest rates will generally:

a)

Increase stock values

b)

Increase present value of dividends

c)

Decrease bond prices

d)

Eliminate all risks

27.

Liquidity risk refers to:

a)

Changes in market trends

b)

Inability to borrow money

c)

Uncertainty in selling assets quickly

d)

Fluctuations in interest rates

28.

A highly illiquid asset example is:

a)

Company stock

b)

Savings account

c)

House in a buyer's market

d)

Government bond

29.

Investors may reduce the price of real estate due to:

a)

Quick demand

b)

High return guarantees

c)

Urgency in selling

d)

Tax incentives

30.

Derivative risks are categorized under:

a)

Market risk

b)

Operational risk

c)

Financial risk

d)

Competitor risk

31.

Which Key Risk Indicator 21.  Arises when the product/services, business line or outsourcing activity does not meet or is not consistent with the Bank's strategic goals and/or expected return-on-investment or fails to innovate its product/services to keep up with the demands and requirements of the Bank?

a)

Strategic

b)

Reputation

c)

Operational

d)

Compliance

32.

Which Key Risk Indicator 21.  Arises when the vendor's services or performance don't meet the expectations of the Bank and its customers which causes the public to form a negative opinion about the Bank?

a)

Strategic

b)

Reputation

c)

Operational

d)

Compliance

33.

Which Key Risk Indicator 21.  Arises when the service provider exposes the Bank to losses due to inadequate or failed internal processes, technological failure, human error, fraud, and external events. This may result to unauthorized transactions, failure to process transactions & fulfill obligation with customers, regulations and other stakeholders?

a)

Strategic

b)

Reputation

c)

Operational

d)

Compliance

34.

Which Key Risk Indicator 21.  Arises when the services, products, or activities of the service provider fail to comply with applicable laws, regulations, and internal policies/procedures/standards and when internal controls are weak or non-existent (e.g., Anti Bribery and Corruption)?

a)

Strategic

b)

Reputation

c)

Operational

d)

Compliance

35.

Which Key Risk Indicator Arises when outsourced services or products are provided by limited number of service providers or are concentrated in limited geographic location?

a)

Vendor Concentration

b)

Geographical

c)

Legal

d)

Exit Strategy

36.

Which Key Risk Indicator 21.  Arises when the Bank engages a foreign-based service provider, exposing the Bank to possible economic, social, and political conditions and events from the country where the provider is located?

a)

Vendor Concentration

b)

Geographical

c)

Legal

d)

Exit Strategy

37.

Which Key Risk Indicator 21.  Arises when the service provider exposes the Bank to legal expenses and possible lawsuits?

a)

Vendor Concentration

b)

Geographical

c)

Legal

d)

Exit Strategy

38.

Which Key Risk Indicator Arises from over-reliance on one service provider, the loss of relevant skills in the Bank itself preventing it from bringing back the activity in-house and contract entered into wherein speedy exits would be expensive?

a)

Vendor Concentration

b)

Geographical

c)

Legal

d)

Exit Strategy

39.

What type of risk arises from the potential for loss due to inadequate or failed internal processes, people, and systems?

a)

Credit risk

b)

Liquidity risk

c)

Market risk

d)

Operational risk

40.

Which Key Risk Indicator is associated with the potential for financial loss due to changes in market conditions affecting the value of investments?

a)

Strategic risk

b)

Reputational risk

c)

Compliance risk

d)

Market risk

41.

Which of the following is a common method for mitigating financial risk?

a)

Speculation

b)

Concentration

c)

Hedging

d)

Ignoring

42.

Which of the following is an example of operational risk?

a)

Supply chain disruptions

b)

Regulatory changes

c)

Currency exchange rates

d)

Market fluctuations

43.

What is the primary goal of risk assessment?

a)

To ignore minor risks

b)

To eliminate all risks

c)

To identify and evaluate risks

d)

To increase uncertainty

44.

Which of these risks is associated with the failure of a business to meet its financial obligations?

a)

Credit risk

b)

Market risk

c)

Reputational risk

d)

Operational risk

45.

Which of the following Inherent Risk Likelihood level pertains to High Risk (Red) rating?

a)

Likely

b)

Possible

c)

Unlikely

d)

Rare

46.

Which Residual Risk Impact level would be interpreted as Low Risk (Green) rating?

a)

Severe

b)

Major

c)

Moderate

d)

Minor

47.

Which Residual Risk Impact level is interpreted as High Risk (Red) rating?

a)

Severe

b)

Major

c)

Moderate

d)

Minor

48.

Which of the following is not an Impact level based on Inherent and Residual Risk Assessment?

a)

Severe

b)

Control

c)

Major

d)

Moderate

49.

Which of the following is a level of Risk Control Effectiveness

a)

Very Tight

b)

Tight

c)

Some

d)

No at all

e)

All of the above

50.

Which of the following is not a Moderate Risk (Amber) rating?

a)

Rare

b)

Unlikely

c)

Some Controls in place

d)

Moderate