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web.groovymark@gmail.com
- December 10, 2024
Question 41
What is a risk assessment?
a) A financial report
b) A systematic process of identifying and evaluating risks
c) A method to increase profits
d) A strategy to avoid risks
Correct Answer: b) A systematic process of identifying and evaluating risks
Explanation: Risk assessment involves understanding and analyzing risks to prioritize management efforts.
Question 42
Why is risk mitigation important?
a) To eliminate all risks
b) To reduce the impact and likelihood of risks
c) To avoid regulatory compliance
d) To increase operational costs
Correct Answer: b) To reduce the impact and likelihood of risks
Explanation: Risk mitigation strategies help organizations minimize the consequences of risks.
Question 43
What is strategic risk management?
a) A method to avoid risks
b) A process for managing risks that can affect the organization’s strategic objectives
c) A financial tool to increase profits
d) A strategy to eliminate risks
Correct Answer: b) A process for managing risks that can affect the organization’s strategic objectives
Explanation: Strategic risk management focuses on addressing risks that may impact the long-term goals of the organization.
Question 44
Which of the following is considered a vulnerability in network security?
A) Strong encryption
B) Open ports
C) Two-factor authentication
D) Encrypted backups
Correct Answer: B) Open ports
Explanation: Open ports can be a vulnerability in network security as they can be exploited by attackers to gain unauthorized access to a system.
Question 45
What is reputational risk?
a) To increase operational risks
b) To ensure that risk management processes are integrated into overall organizational leadership and oversight
c) To avoid decision-making
d) To reduce financial performance
Correct Answer: b) To ensure that risk management processes are integrated into overall organizational leadership and oversight
Explanation: Effective corporate governance ensures that risk management is a key part of the organization’s strategic oversight.
Question 46
What is the purpose of a risk management policy?
a) To eliminate all risks
b) To define how risks are identified, assessed, managed, and monitored across the organization
c) To avoid financial reporting
d) To reduce operational efficiency
Correct Answer: b) To define how risks are identified, assessed, managed, and monitored across the organization
Explanation: A risk management policy provides clear guidance on how risks are handled within the organization.
Question 47
How can risk management contribute to sustainability efforts?
a) By eliminating all risks
b) By identifying and managing risks related to environmental, social, and governance factors
c) By avoiding regulatory compliance
d) By increasing operational costs
Correct Answer: b) By identifying and managing risks related to environmental, social, and governance factors
Explanation: Risk management plays a role in sustainability by addressing potential risks to environmental and social responsibilities.
Question 48
What is the difference between inherent and residual risk?
a) There is no difference
b) Inherent risk is the level of risk before controls are implemented, while residual risk is the risk that remains after controls are in place
c) Inherent risk eliminates all risks
d) Residual risk increases operational costs
Correct Answer: b) Inherent risk is the level of risk before controls are implemented, while residual risk is the risk that remains after controls are in place
Explanation: Inherent risk represents the initial risk, while residual risk reflects what remains after mitigation efforts.
Question 49
What is the goal of risk monitoring?
a) To eliminate all risks
b) To track and assess risks over time and adjust management strategies as needed
c) To avoid decision-making
d) To reduce operational efficiency
Correct Answer: b) To track and assess risks over time and adjust management strategies as needed
Explanation: Continuous risk monitoring ensures that risk management efforts are responsive to changing conditions.
Question 50
Why is stakeholder engagement important in risk management?
a) To increase financial risks
b) To ensure that all relevant parties are involved in identifying and managing risks
c) To avoid regulatory compliance
d) To reduce operational costs
Correct Answer: b) To ensure that all relevant parties are involved in identifying and managing risks
Explanation: Engaging stakeholders ensures that different perspectives are considered and that risk management efforts are comprehensive.
