1. What is the first step in the risk management process?
a) Risk assessment
b) Risk identification
c) Risk control
d) Risk monitoring
Answer: b) Risk identification
2. Which of the following is a common risk management strategy?
a) Risk acceptance
b) Risk creation
c) Risk amplification
d) Risk neglect
Answer: a) Risk acceptance
3. In risk management, what does “mitigation” refer to?
a) Ignoring the risk
b) Transferring the risk to another party
c) Reducing the impact or likelihood of the risk
d) Increasing the risk exposure
Answer: c) Reducing the impact or likelihood of the risk
4. Which of the following tools is commonly used for risk assessment?
a) SWOT analysis
b) Risk matrix
c) PEST analysis
d) Brainstorming
Answer: b) Risk matrix
5. What is the purpose of risk monitoring in the risk management process?
a) To eliminate all risks
b) To track identified risks and evaluate the effectiveness of risk responses
c) To avoid addressing new risks
d) To increase the likelihood of risks occurring
Answer: b) To track identified risks and evaluate the effectiveness of risk responses
6. Which risk management strategy involves transferring the risk to another party, such as through insurance?
a) Risk avoidance
b) Risk transfer
c) Risk retention
d) Risk escalation
Answer: b) Risk transfer
7. In risk management, what is a “contingency plan”?
a) A plan to ignore risks
b) A plan to deal with risks if they occur
c) A plan to create new risks
d) A plan to increase the severity of risks
Answer: b) A plan to deal with risks if they occur
8. Which type of risk is most difficult to quantify?
a) Financial risk
b) Operational risk
c) Strategic risk
d) Reputational risk
Answer: d) Reputational risk
9. What is the primary objective of risk management in an organization?
a) To ensure that all risks are eliminated
b) To minimize potential losses while maximizing opportunities
c) To focus solely on financial risks
d) To avoid making decisions due to risk concerns
Answer: b) To minimize potential losses while maximizing opportunities
10. Which of the following is an example of a risk management control measure?
a) Documenting the risk
b) Ignoring the risk
c) Implementing safety protocols
d) Denying the existence of risk
Answer: c) Implementing safety protocols