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web.groovymark@gmail.com
- December 14, 2024
Question 41
A company is evaluating the risks of expanding into a foreign market with political instability. What should the company assess first?
a) Employee morale
b) Political risk and regulatory uncertainty
c) Marketing strategies
d) Supplier contracts
Correct Answer: b) Political risk and regulatory uncertainty
Explanation: Assessing political risk and regulatory uncertainty is critical to understanding the potential challenges and developing a risk mitigation plan.
Question 42
A company is developing a risk management plan for a new investment in clean energy technology. What is the first step in this process?
a) Identify potential technological and environmental risks
b) Increase employee benefits
c) Expand marketing efforts
d) Increase production capacity
Correct Answer: a) Identify potential technological and environmental risks
Explanation: Identifying technological and environmental risks is essential for developing a risk management plan for clean energy investments.
Question 43
A company is evaluating the risks of launching a new product in a highly regulated industry. What is the primary risk to assess?
a) Employee morale
b) Regulatory compliance and legal risks
c) Marketing strategies
d) Supplier contracts
Correct Answer: b) Regulatory compliance and legal risks
Explanation: Regulatory compliance and legal risks are critical in highly regulated industries, as failure to comply can lead to severe penalties.
Question 44
A company is conducting a risk assessment for a project that involves significant international trade. What is the most important financial risk to assess?
a) Employee satisfaction
b) Currency exchange risks and tariffs
c) Marketing strategies
d) Supplier relationships
Correct Answer: b) Currency exchange risks and tariffs
Explanation: Currency exchange risks and tariffs can significantly affect international trade, making them a priority in financial risk assessments.
Question 45
A company is expanding its operations into a market with high levels of inflation. What should be the company’s primary focus in its risk management plan?
a) Employee morale
b) Inflation risk and cost control
c) Marketing strategies
d) Supplier contracts
Correct Answer: b) Inflation risk and cost control
Explanation: Inflation can significantly affect operational costs and profitability, making it a key focus in the risk management plan.
Question 46
A company is assessing the risks of automating its customer service operations. What is the primary risk to assess in this context?
a) Employee morale
b) System reliability and customer satisfaction
c) Marketing strategies
d) Supplier contracts
Correct Answer: b) System reliability and customer satisfaction
Explanation: Ensuring that automated systems are reliable and maintaining customer satisfaction are critical risks to assess when automating customer service.
Question 47
A company is developing a risk management framework for handling legal risks. What should be the first step in this process?
a) Identify potential legal risks and vulnerabilities
b) Increase employee benefits
c) Expand marketing efforts
d) Increase production capacity
Correct Answer: a) Identify potential legal risks and vulnerabilities
Explanation: Identifying legal risks and vulnerabilities is the foundation for developing a framework to manage and mitigate these risks.
Question 48
A company is assessing the risks of entering a joint venture with a foreign company in a market with high regulatory barriers. What should the company prioritize in its risk management plan?
a) Employee morale
b) Regulatory compliance and legal risks
c) Marketing strategies
d) Supplier contracts
Correct Answer: b) Regulatory compliance and legal risks
Explanation: Regulatory compliance and legal risks can significantly impact joint ventures in foreign markets, making them a priority in the risk management plan.
Question 49
A company is expanding its operations into a country with strict environmental regulations. What is the first step in the risk management process?
a) Identify environmental compliance risks
b) Increase employee benefits
c) Expand marketing efforts
d) Increase production capacity
Correct Answer: a) Identify environmental compliance risks
Explanation: Identifying environmental compliance risks is critical to avoiding legal penalties and ensuring smooth operations in countries with strict regulations.
Question 50
A company is conducting a risk assessment for a new product launch in a foreign market. What is the most important market factor to consider?
a) Employee morale
b) Cultural differences and market acceptance
c) Marketing strategies
d) Supplier contracts
Correct Answer: b) Cultural differences and market acceptance
Explanation: Understanding cultural differences and market acceptance is essential to ensuring the product’s success in a foreign market.
