Enterprise Risk Management - Quiz
1. It is the process of measuring or assessing risk and developing strategies to manage
it. It is also a systematic approach in identifying, analyzing and controlling areas or
events with a potential for causing unwanted change.
a. Risk
b. Risk Tolerance
c. Risk Management
d. Risk Utility
2. Taxonomy-based risk is a risk identification.
a. True
b. False
3. Which of the following is not a part of Establishing the Concept?
a. Defining a solution for the activity and an agenda for identification.
b. Developing an analysis of risks involved in the process.
c. Identification of risk in a selected domain of interest.
d. Planning and remainder of the process.
4. Risk management includes except:
a. Risk Planning
b. Risk Avoiding
c. Assessing Risk Areas
d. Monitoring Risks
5. What steps are you going to take once the risks have been identified? It is a critical
process to make the best educated decisions in prioritizing the implementation of the
risk management plan.
a. Risk Appetite
b. Risk Response
c. Risk Charting
d. Risk Assessment
6. It pertains to ethical values, desired behaviors, and understanding of risk in the entity.
It reflects the mission, vision and core values of the organization – why an entity
exists, who it is, what it intends to do and how it intends to do it.
a. Culture
b. Tradition
c. Risk
d. Strategy
7. The most significant types of risk catalyst are as follows except:
a. Technology
b. People
c. Internal Factors
d. External Factors
8. Under ISO, _______ should reflect the organization’s values, objectives and
resources and be consistent with policies and statements about risk management.
The criteria should be defined taking into consideration the organization’s obligations
and the views of stakeholders.
a. Risk Criteria
b. Risk Management
c. Risk Response
d. Risk Evaluation
9. Risk shouldn’t be actively managed and given a high priority across the whole
organization
a. True
b. False
10. It involves acknowledging and accepting the potential consequences of certain risks
without taking steps to avoid, transfer, or mitigate them.
a. Risk Avoidance
b. Risk Reduction
c. Risk Sharing
d. Risk Acceptance
11. A ________ provides an oversight of the strategy and carries out governance
responsibilities to support management in achieving strategy and business
objectives.
a. Risk Management
b. Risk Management Process
c. Risk Management Framework
d. Risk Management System
12. Setting up a separate risk management committee chaired by a board member is
one of the steps in the risk management system.
a. True
b. False
13. It refers to different processes, controls, and measures in place that are designed to
reduce the risk that organizations and workers face on a regular basis.
a. Risk Avoidance
b. Risk Reduction
c. Risk Sharing
d. Risk Acceptance
14. Which of the following is not a key element that the company-wide risk management
system should possess.
a. Organization Structure
b. Goals and Objectives
c. Risk Management Process Documentation
d. Risk Assessment Identification
15. _______ guides the course of the organization, its external and internal relationships,
and the rules, processes and practices needed to achieve its purpose.
a. Governance
b. Management
c. Desired Culture
d. Ethical Values
16. ________ is actively seeking and embracing risks with the potential for high rewards.
This approach is often used in businesses that aim for significant growth or
competitive advantage by taking calculated risks.
a. Pure Risk
b. Risk Pursuance
c. Risk Identification
d. Risk Response
17. The organization assesses the risks and opportunities of different strategic
alternatives. Included in the assessment are the following:
a. Risk to the chosen strategy.
b. Possibility that the strategy does not align with the mission, vision and core
values of the entity.
c. Both a and b
d. None of the above
18. Examples of significant risks might be the loss of a major customer, the failure of a
key supplier or the appearance of a significant competitor.
a. True
b. False
19. It refers to the boundaries of acceptable variation in performance related to
achieving business objectives.
a. Risk
b. Risk Tolerance
c. Risk Management
d. Risk Utility
20. ______ are the entity’s beliefs and ideals about what is good or bad, acceptable or
unacceptable, which influence the behavior of the organization.
a. Desired Culture
b. Responsibility
c. Pure Risks
d. Core Values