17 Questions
What is the definition of risk appetite according to the provided text?
The degree of uncertainty an entity is willing to take on in anticipation of a reward
Which type of risks are those that remain after all response strategies have been implemented?
Residual Risks
What is the definition of risk tolerance as per the text?
The maximum acceptable deviation an entity is willing to accept on project objectives
Which type of risks cannot be managed because they have not been identified and analyzed?
Unknown Risks
What is risk utility defined as in the text?
The amount of satisfaction received from a potential payoff
Which type of risk is characterized by changes in human behavior and social structures?
Social Environment Risk
In risk management, what does assigning a risk target a color represent?
Tolerance level for the risk
Which environment risk type presents both risks and opportunities?
Legal Environment Risk
What aspect must be considered to determine the severity of identified risks in risk management?
Probability and Impact factor
Which risk type focuses on uncertainty and the probability of its occurrence?
Cognitive Environment Risk
What does a red color in a risk matrix represent?
High severity of the risk
What does the AMBER/Orang category represent in terms of risk tolerance?
High tolerance to the threat occurring
What action is required when the risk rating is at an 'Extreme' level?
Immediate action required and commitment of senior management
What type of probability scale is used in qualitative risk assessment?
Nonnumeric probability scale
What is the main difference between Risk & Problem according to the text?
Risks are future uncertainties, while problems are current issues
In the Risk Management Process, what does the 'GREEN' category represent in terms of risk aversion?
Averse to the risk as it cannot be tolerated if it materializes
What action is required when the risk rating is at a 'Low' level?
Managed by routine procedures such as quality management systems
Test your knowledge on risk management concepts as explained by Hyttinen in 2017. Explore key terms such as risk appetite, risk tolerance, and risk utility.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
