Risk Assessment Report Process

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What is the primary purpose of a risk assessment report?

Analyzing historical data

Identifying and evaluating potential risks (correct)

Identifying cybersecurity threats

Prioritizing risks based on likelihood

How are risks typically prioritized in risk evaluation?

By the number of cyberattacks

Based on historical data

By their significance (correct)

By assessing market conditions

Which of the following is a common cybersecurity threat mentioned in the text?

Financial mismanagement

Supply chain disruptions

Cyberattacks (correct)

Employee turnover

What role does senior management play in risk assessment?

Setting strategic direction and identifying high-level risks Signup and view all the answers

How are risks identified in a bottom-up approach?

At the operational level by frontline staff or project teams Signup and view all the answers

Which risk mitigation strategy involves simple and structured lists of potential risks?

Checklists Signup and view all the answers

What technique aims to gather ideas and perspectives on potential risks from participants in a group setting?

Brainstorming Signup and view all the answers

Which approach involves one-on-one or group discussions with key stakeholders or subject matter experts to collect insights?

Interviews Signup and view all the answers

What is the term used for a framework that assesses both internal and external factors under risk assessment?

SWOT Analysis Signup and view all the answers

Which term refers to an individual's or organization's readiness to accept, tolerate, or avoid uncertainty?

Risk appetite Signup and view all the answers

What does risk capacity indicate for a bank?

Level of risk absorption based on earnings power Signup and view all the answers

How often a risk is expected to materialize is indicated by which aspect of risk assessment?

Risk likelihood Signup and view all the answers

What is LOSS PREVENTION primarily focused on?

Reducing the likelihood of adverse events Signup and view all the answers

Which response is recommended for high-likelihood/low-impact risks?

Treat Signup and view all the answers

What does COST CONTAINMENT focus on?

Reducing the impact and consequences of events Signup and view all the answers

What does the RISKINESS INDEX provide for organizations?

A snapshot of overall risk level Signup and view all the answers

In which situation would Terminate be the dominant response?

High-impact/low-likelihood risks Signup and view all the answers

What is the main focus of DAMAGE LIMITATION?

Reducing the magnitude of adverse events Signup and view all the answers

What does a balance sheet represent?

A snapshot of a company's financial health at a specific point in time Signup and view all the answers

How do employers protect their employees' personal and professional interests?

By providing employee benefits Signup and view all the answers

What is the purpose of purchasing insurance?

To protect against financial losses from unexpected events Signup and view all the answers

What does a Disaster Recovery plan focus on?

Damage and limitation control Signup and view all the answers

What do Captive insurance companies do?

Cover risks of larger businesses internally Signup and view all the answers

What do Mandatory Legal Obligations refer to?

Rules and requirements set by laws and regulations that must be followed Signup and view all the answers