Risk Management Strategy

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What is the primary focus of risk management?

To eliminate risks entirely

To identify threats and vulnerabilities

To implement controls and assessment

To deal with the effect of uncertainty (correct)

What is the first step in the risk management process?

Identification and implementation

Risk assessment (correct)

Risk treatment

Risk control

What are the two main components of risk management?

Risk identification and risk implementation

Risk monitoring and risk review

Risk assessment and risk treatment (correct)

Risk control and risk evaluation

What is the goal of risk management?

To deal with the effect of uncertainty Signup and view all the answers

What is the name of the figure that illustrates the risk management process?

Figure (5-1): Risk Management Signup and view all the answers

What type of risk is often associated with an organization's business strategy?

Speculative risk Signup and view all the answers

What is the primary purpose of a risk management plan?

To address each risk in a specific way Signup and view all the answers

How many focuses are typically outlined in a risk management plan for each risk?

4 Signup and view all the answers

What is the relationship between risk management and business strategy?

Risk management is a component of business strategy Signup and view all the answers

What form will uncertainty ordinarily take?

Negative impacts Signup and view all the answers

What might also be identified and pursued aside from negative impacts?

Positive impacts Signup and view all the answers

What form does uncertainty NOT ordinarily take?

Positive impacts Signup and view all the answers

What is the usual form that uncertainty takes?

Negative impacts Signup and view all the answers

Which impacts might also be identified and pursued despite not being the ordinary form of uncertainty?

Positive impacts Signup and view all the answers

Which type of risks are most risk assessments more interested in?

Non-speculative risks Signup and view all the answers

What is the main characteristic of non-speculative risks?

They can result in only a loss Signup and view all the answers

Why might risk assessments consider speculative risks?

Because they can mitigate the negatives Signup and view all the answers

How do speculative risks differ from non-speculative risks?

Speculative risks can result in either a profit or loss Signup and view all the answers

What is the primary concern of risk assessments?

The losses from non-speculative risks Signup and view all the answers

Which action involves deciding not to pursue practices that give rise to risk?

Avoid the risk Signup and view all the answers

What does it mean to retain the risk?

Keeping the risk under review Signup and view all the answers

When should a risk be kept under review?

When the risk is retained Signup and view all the answers

Which action is not associated with risk management as described?

Transferring the risk Signup and view all the answers

How should a risk be managed if it is kept?

By consistently reviewing it Signup and view all the answers

Risk Management Strategy

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Questions and Answers

What is the primary focus of risk management?

What is the first step in the risk management process?

What are the two main components of risk management?

What is the goal of risk management?

What is the name of the figure that illustrates the risk management process?

What type of risk is often associated with an organization's business strategy?

What is the primary purpose of a risk management plan?

How many focuses are typically outlined in a risk management plan for each risk?

What is the relationship between risk management and business strategy?

What form will uncertainty ordinarily take?

What might also be identified and pursued aside from negative impacts?

What form does uncertainty NOT ordinarily take?

What is the usual form that uncertainty takes?

Which impacts might also be identified and pursued despite not being the ordinary form of uncertainty?

Which type of risks are most risk assessments more interested in?

What is the main characteristic of non-speculative risks?

Why might risk assessments consider speculative risks?

How do speculative risks differ from non-speculative risks?

What is the primary concern of risk assessments?

Which action involves deciding not to pursue practices that give rise to risk?

What does it mean to retain the risk?

When should a risk be kept under review?

Which action is not associated with risk management as described?

How should a risk be managed if it is kept?

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