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Free Practice Quiz Question List

4 Risk Management Online Quiz Questions

Use this free practice quiz with 20 questions to review 4 Risk Management, test your knowledge, and prepare for your next test or exam.

20 questions
01
True or false
1 point

True or false: Effective risk management should be treated as a separate paperwork exercise rather than integrated into an organization’s work.

  1. A

    True

  2. B

    False

02
Choose one
1 point

A supplier relies on one production site. A disruption could delay component deliveries and lead to missed orders. Which part of this risk description is the event?

  1. A

    The supplier relies on a single production site.

  2. B

    A disruption could delay component deliveries.

  3. C

    Customer orders could be missed and revenue lost.

  4. D

    The organization has already missed customer orders.

03
Written response
1 point

What term describes the type and level of risk an organization is willing to accept while pursuing its objectives?

04
Fill in the blank
1 point

After choosing a response to a risk, the organization should continue to controls, actions, and changing exposure.

05
Choose one
1 point

Which situation is best classified as a strategic risk?

  1. A

    An equipment failure during production

  2. B

    A staff shortage affecting service delivery

  3. C

    A shift in customer needs that could affect long-term success

  4. D

    An error in a routine processing task

06
True or false
1 point

True or false: Ratings in a likelihood-impact matrix are precise predictions of what will happen.

  1. A

    True

  2. B

    False

07
Choose one
1 point

A team wants to keep using a piece of equipment but plans maintenance and process changes to lower the likelihood or impact of failure. Which risk response is it choosing?

  1. A

    Accept the risk without further action.

  2. B

    Introduce maintenance and process changes to lower the likelihood or impact.

  3. C

    Share part of the exposure through an insurance arrangement.

  4. D

    Stop the activity that creates the exposure.

08
Fill in the blank
1 point

A can provide early warning that a risk may be growing.

09
Written response
1 point

What term describes a risk’s exposure before controls are considered?

10
Choose one
1 point

A risk arises directly from a team’s day-to-day activity. Which statement best describes who should generally own and manage it?

  1. A

    A governing body owns every risk and operates all daily controls.

  2. B

    Those responsible for the activity generally own its risks and operate day-to-day controls.

  3. C

    The person who records a risk automatically becomes its owner.

  4. D

    A risk register replaces the need for accountable owners.

11
Choose all
1 point

Select all the areas into which effective risk management should be integrated.

  1. A

    Governance

  2. B

    Strategy

  3. C

    A separate paperwork process disconnected from decisions

  4. D

    Planning

  5. E

    Daily operations

12
Choose one
1 point

An organization buys insurance for a potential loss but recognizes that it may still bear some exposure. Which risk response does this illustrate?

  1. A

    Transfer part of the exposure through insurance, while recognizing some exposure may remain.

  2. B

    Eliminate all exposure simply by purchasing insurance.

  3. C

    Stop the activity that creates the exposure.

  4. D

    Retain the risk knowingly without transferring any part of it.

13
Choose all
1 point

A team is preparing a risk treatment plan. Select all the details it should specify.

  1. A

    The planned action

  2. B

    The accountable owner

  3. C

    A guarantee that the risk will not occur

  4. D

    The resources and due date

  5. E

    The risk’s original description, without any planned action

  6. F

    The expected effect and how progress will be checked

14
Open ended
1 point

An organization is considering an expansion that could create an opportunity but depends on uncertain customer demand. Explain how its leaders should identify and assess the risk, decide on a response, assign accountability, and monitor the situation.

15
Choose one
1 point

A key supplier relies on one production site. If that site is disrupted, component deliveries could be delayed, leading to missed customer orders and lost revenue. Which part of this risk description is the event?

  1. A

    A key supplier relies on a single production site.

  2. B

    A disruption could delay component deliveries.

  3. C

    The organization could miss customer orders and lose revenue.

16
True or false
1 point

A likelihood-impact matrix assigns a precise prediction of what will happen to each risk.

  1. A

    True

  2. B

    False

17
Written response
1 point

An organization has put controls in place to address a risk. What term describes the exposure that remains after those controls?

18
Choose one
1 point

A company wants to transfer part of its financial exposure from a possible loss but recognizes that it may still retain some exposure. Which risk response best fits this approach?

  1. A

    Avoid the risk by stopping the activity.

  2. B

    Accept the risk and take no further action.

  3. C

    Share part of the exposure through insurance.

  4. D

    Pursue the risk to capture an opportunity.

19
Written response
1 point

Before prioritizing a risk, an organization compares its assessed exposure with the type and level of risk it is willing to accept while pursuing its objectives. What is this threshold called?

20
Choose one
1 point

Which situation is best classified as a strategic risk rather than an operational risk?

  1. A

    A process error in delivering a service

  2. B

    A business strategy based on unreliable assumptions

  3. C

    A staff shortage affecting day-to-day operations

  4. D

    Equipment failure during production