-
web.groovymark@gmail.com
- December 14, 2024
Question 41
A company is expanding its operations into a country with high political instability. What risk management strategy should the company consider?
a) Risk retention
b) Risk sharing
c) Risk avoidance
d) Risk transference
Correct Answer: b) Risk sharing
Explanation: Risk sharing through partnerships or joint ventures allows the company to mitigate the risks associated with political instability by spreading responsibility with local partners.
Question 42
A company is conducting a risk assessment for a new AI platform. What should the company prioritize in this assessment?
a) Marketing costs
b) Technological changes and innovations
c) Employee satisfaction
d) Supply chain structure
Correct Answer: b) Technological changes and innovations
Explanation: Prioritizing technological changes and innovations ensures that the company assesses the potential risks of developing an AI platform in a rapidly evolving industry.
Question 43
A company is expanding its product line into a new market and conducting a risk assessment. What additional information should the risk management team consider?
a) Incremental information
b) Employee satisfaction levels
c) Advertising costs
d) Market trends
Correct Answer: a) Incremental information
Explanation: Incremental information provides a deeper understanding of the risks associated with new product launches and helps the company make informed decisions.
Question 44
A company is using Monte Carlo simulations to assess the risks of launching a new product. What tool should the company use to visualize key uncertainties?
a) Risk map
b) Tornado diagram
c) Market research
d) Advertising data
Correct Answer: b) Tornado diagram
Explanation: A tornado diagram helps visualize key uncertainties in Monte Carlo simulations, allowing the company to identify the factors that have the greatest impact on the project.
Question 45
A company is conducting scenario planning to test its ability to manage market risks. What should the company prioritize in this planning exercise?
a) Employee satisfaction
b) Customer satisfaction
c) Market dynamics and competition
d) Increasing salaries
Correct Answer: c) Market dynamics and competition
Explanation: Prioritizing market dynamics and competition ensures that the company assesses the potential risks of market changes and prepares strategies to manage these risks effectively.
Question 46
A company has experienced frequent equipment breakdowns and is considering purchasing insurance. What risk management strategy is the company using?
a) Risk transference
b) Risk avoidance
c) Risk retention
d) Risk reduction
Correct Answer: a) Risk transference
Explanation: Purchasing insurance transfers the financial burden of potential equipment breakdowns to the insurance provider, reducing the company’s exposure to these risks.
Question 47
A company is expanding its product line and conducting a risk assessment. What additional element should the risk management team consider in this assessment?
a) Incremental information
b) Employee training
c) Advertising costs
d) Customer satisfaction
Correct Answer: a) Incremental information
Explanation: Incremental information provides a deeper understanding of the risks associated with new product launches and helps the company make informed decisions.
Question 48
A company is using Monte Carlo simulations to assess the risks of a new product launch. What should the company include in its report to facilitate a productive discussion with management?
a) A chart showing the likelihood of different project outcomes
b) Employee satisfaction data
c) Advertising costs
d) Supply chain structure
Correct Answer: a) A chart showing the likelihood of different project outcomes
Explanation: A chart from the Monte Carlo simulation provides management with a visual representation of the likelihood of different outcomes, facilitating a more informed discussion.
Question 49
A company is using scenario planning to test its ability to manage supply chain disruptions. What should the company prioritize in this assessment?
a) Employee satisfaction
b) Market dynamics and competition
c) Production costs
d) Supply chain structure
Correct Answer: d) Supply chain structure
Explanation: Assessing the supply chain structure helps the company identify potential risks associated with supply chain disruptions and develop strategies to mitigate these risks.
Question 50
A company is expanding its operations into a new country with significant political risks. What risk mitigation strategy should the company consider?
a) Risk sharing
b) Risk avoidance
c) Risk retention
d) Risk transference
Correct Answer: a) Risk sharing
Explanation: Sharing risks through partnerships or joint ventures allows the company to mitigate the risks associated with political instability by spreading responsibility with local partners.
