17 Questions
What type of risk is involved when an employee writes the wrong amount on a check?
Operational risk
What is an example of a 'process' failure in the scenario described?
Inadequate payment process
What is another type of event that can cause operational risk?
Power cut
What is the primary benefit of allowing anonymous incident reporting in the risk identification process?
To increase the likelihood of response from employees who are worried about repercussions from speaking up
Why is it important to manage operational risks?
To reduce the likelihood of financial losses
What is a potential way to mitigate the risk of writing the wrong amount on a check?
Having a second staff member authorize major payments
What is the main advantage of seeking employee feedback in the risk identification process?
To identify risks that may not be considered otherwise
What is the main advantage of using models or software in the risk identification process?
To help identify and classify risks
What is the primary benefit of seeking employee feedback in a group setting?
To encourage brainstorming and lead to a higher number of identified risks
What is the primary purpose of analyzing customer complaints in the risk identification process?
To identify risks associated with processes or issues that customers frequently complain about
What type of risks can be identified through analyzing customer complaints?
Reputational risks
What is a key step in the risk management process when beginning to identify risks?
Breaking down the big picture into high-level categories
What is a benefit of asking insightful questions during the risk management process?
It helps to identify potential risks that may not have been considered
What is a method of identifying prospective risks in an organization?
Brainstorming with staff or external stakeholders
Which of the following is a category of risk that an organization may face?
Reputational risk
What is a purpose of flow charting a process in risk management?
To identify potential risks in a process
What is a key aspect of risk management in an organization?
It is a multi-faceted process
Identify the causes of operational risk and learn how to prevent them. This quiz explores the importance of secure payment processes and authorization systems in minimizing risk.
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