Management of Risk Foundation v6.0

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Exam contains 140 questions

What are the M_o_R principles informed by?

  • A. Statements of internal control
  • B. International standard for risk management ISO31000:2009
  • C. Public Company Accounting and Reform and Investor Protection Act
  • D. Basel Accord (Basel II)


Answer : B

Who does a 'risk actionee' keep up to date on progress when implementing a response to a risk?

  • A. Senior team
  • B. Audit committee
  • C. Risk owner
  • D. Team


Answer : C

Identify the missing word in the following sentence. Applying the 'aligns with objectives' principle at the [ ? ] perspective ensures risk management is responsive to changes to objectives that meet shareholder needs, reputation and demand for services.

  • A. operational
  • B. project
  • C. programme
  • D. strategic


Answer : D

Which BEST describes an area of uncertainty at the programme perspective?

  • A. Changes to customer requirements for business products
  • B. Interdependences between business change initiatives
  • C. Ability of the infrastructure to meet the required level of service
  • D. Operational activities that may affect the organizational reputation


Answer : B

Identify the missing words in the following sentence. Because organizations [ ? ] they need to use the environmental risk management' specialism.

  • A. are concerned about stakeholder perceptions
  • B. see brand and reputation as key assets
  • C. face financial penalties for polluting waterways
  • D. fail to deliver minimum standards


Answer : C

Which action is NOT needed in order for risk management to be effective?

  • A. Identify the risk
  • B. Eliminate the risk
  • C. Assess the risk
  • D. Control the risk


Answer : B

Which is a benefit of effective risk management?

  • A. Activity plans are agreed before the activity commences
  • B. Staff members are better prepared to respond to incidents
  • C. Removes the organization's need to take risks
  • D. Guarantees business benefits will be delivered


Answer : B

What is a 'central risk function'?

  • A. A group with formal responsibility for supporting strategic risk management
  • B. A group that may pose a risk to objectives through its opposition to plans
  • C. A group responsible for approving the funding for risk management
  • D. A group that acts on risks escalated from other perspectives


Answer : A

Which is a use of the risk management policy in the 'identify - context' step for an activity?

  • A. Recording departures from the risk management process guide
  • B. Identifying the activity-specific categories to be used for grouping risks
  • C. Providing guidance on setting risk tolerance thresholds
  • D. Defining the records to be used


Answer : C

Which effect on the organization's objectives could the PESTLE analysis technique help to identify

  • A. Risk exposure trends
  • B. Current external factors
  • C. Long-term developments
  • D. Internal strengths


Answer : B

Which BEST describes an area of uncertainty at the operational perspective?

  • A. Variation to the schedule of a defined business product
  • B. Availability of skills required to deliver services to customers
  • C. Minimizing disruptions to customer services during transformational change
  • D. Damage to the organization's infrastructure


Answer : B

Which M_o_R principle advocates that an organization's risk appetite should be within the organization's risk capacity?

  • A. Aligns with objectives
  • B. Fits the context
  • C. Informs decision-making
  • D. Provides clear guidance


Answer : A

Which is a benefit of effective risk management?

  • A. Successful completion of all change activities
  • B. Organizations are better prepared to recover from unplanned incidents
  • C. Eliminates risk-taking within an organization
  • D. Guarantees business benefits will be delivered


Answer : B

Which BEST describes the 'reduce the threat' risk response option?

  • A. Changing the planned tasks in an activity
  • B. Performing an action to minimise the chance of a risk impacting objectives
  • C. Monitoring a risk to ensure it remains within acceptable tolerance
  • D. Partaking in a pain/gain contract with another party for a specified risk


Answer : B

What is defined as the level of risk exposure that, once exceeded, will trigger an escalation?

  • A. Risk appetite
  • B. Risk capacity
  • C. Risk tolerance
  • D. Risk perception


Answer : C

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Exam contains 140 questions

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