This quiz works best with JavaScript enabled. Home > Finance > Risk Management > Enterprise Risk Management – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Enterprise Risk Management Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Making a Disaster Recovery Plan is a form of Risk Response: A) Transfer. B) Reduce Impact. C) Avoid. D) Reduce Likelihood. Show Answer Correct Answer: B) Reduce Impact. 2. ..... envisage Overall Objectives and Ensure the Implementation of Risk Management in Islamic Financial Institutions. A) Risk management department. B) Internal audit. C) Board of director. D) Management. Show Answer Correct Answer: C) Board of director. 3. Risk criteria should reflect A) Organizational values, goals, resources, consistent with policies. B) Profit and loss, value of cooperation, risk conditions. C) All true. D) All wrong. Show Answer Correct Answer: A) Organizational values, goals, resources, consistent with policies. 4. Risk Terminology with Regards to Eliminating the Risk Completely? A) Risk Retention. B) Risk Transfer. C) Risk Avoidance. D) Risk Reduction. Show Answer Correct Answer: C) Risk Avoidance. 5. How many ERM concepts are there A) 4. B) 3. C) 6. D) 5. Show Answer Correct Answer: B) 3. 6. Based on ISO:31000:2018, risk management objectives are implemented in organizations, namely A) Create value. B) Developing values. C) Leverage value. D) Create and protect value. Show Answer Correct Answer: D) Create and protect value. 7. What is enterprise risk management (ERM)? A) A process of evaluating internal controls to ensure operations are carried out efficiently and effectively. B) A process designed to identify material events that may affect the financial statements and to manage risk within the entity's risk appetite. C) A process, effected by an entity's board of directors, management, and other personnel designed to identify potential events that may affect the entity and to manage risk within its risk appetite. D) A process by which compliance with laws and regulations can be assessed. Show Answer Correct Answer: C) A process, effected by an entity's board of directors, management, and other personnel designed to identify potential events that may affect the entity and to manage risk within its risk appetite. 8. Providing guidance on the characteristics of effective and efficient risk management is the aim of..... A) Risk analysis. B) Risk management principles. C) Identify risks. D) Risk evaluation. Show Answer Correct Answer: B) Risk management principles. 9. What are the explicit aspects of risk that need to be considered in decision making? A) Strategic, operational and risk management aspects. B) Financial, social and political aspects. C) Gross loss, operational loss, and credit loss. D) VAR, limits and trading errors. Show Answer Correct Answer: A) Strategic, operational and risk management aspects. 10. The following are risk identification techniques, except..... A) Professional risk certification. B) Pencarian informasi. C) Document review. D) Analisis stakeholder. Show Answer Correct Answer: A) Professional risk certification. 11. The Risk Level we expect is called: A) Expected Risk. B) Inherent Risk. C) Significant Risk. D) Residual Risk. Show Answer Correct Answer: A) Expected Risk. 12. What are the goals of organizational risk management? A) To predict and manage risks. B) To create a risk-aware culture. C) To maximize organizational value. D) To develop risk management infrastructure. Show Answer Correct Answer: C) To maximize organizational value. 13. The following are processes in risk management, except..... A) Monitoring and survey. B) Scope, context and criteria. C) Risk management. D) Integration. Show Answer Correct Answer: D) Integration. 14. A strategy to avoid risk by not carrying out or continuing activities that could give rise to the risk is called a strategy..... A) Acceptance. B) Avoidance. C) Sharing/transfer. D) All wrong. Show Answer Correct Answer: B) Avoidance. 15. The Following is The External Factors Exposing Banks to Risk EXCEPT? A) Changes in Banking Regulation. B) Goverment's Monetary and Fiscal Policy. C) Political System. D) Bank's Effficiency. Show Answer Correct Answer: D) Bank's Effficiency. 16. The purpose of communication & consultation is to help stakeholders in A) Understand the risks. B) Understand the basis of decision making. C) Understand the reasons why certain actions are necessary. D) All are correct. Show Answer Correct Answer: D) All are correct. 17. What is the meaning of inclusive risk management principles? A) Only certain people are involved. B) All stakeholders are involved. C) All true. D) All wrong. Show Answer Correct Answer: B) All stakeholders are involved. 18. What is the purpose of soft infrastructure in risk management? A) To develop a risk-aware culture. B) To support risk management policies and procedures. C) To provide technological tools for risk analysis. D) To create a physical infrastructure for risk management. Show Answer Correct Answer: A) To develop a risk-aware culture. 19. How many ERM framework in coso? A) 6. B) 4. C) 5. D) 3. Show Answer Correct Answer: C) 5. 20. Which of the following answer is NOT refer to Risk Management Process (ISO31000, 2018)? A) Risk transfer. B) Risk analysis. C) Risk identification. D) Establishing the context. Show Answer Correct Answer: A) Risk transfer. 21. What can internal audit do as a part of risk management roles in an organization? A) Agree and implement the risk management performance in their department. B) Develop a risk-based internal audit programme. C) Audit the finance account to ensure there is zero internal risk exist that will lead to fraud. D) Establish a risk management policy for the board to follow. Show Answer Correct Answer: B) Develop a risk-based internal audit programme. 22. How does the 'Uncertainty, Usury & Gambling' concept become a risk to society? A) Involved in Excessive and Unhealthy Risk. B) Jeopadise Family, Wealth, and Society. C) Protection of Maqasid Shariah. D) Forbidden by Islamic Teaching. Show Answer Correct Answer: A) Involved in Excessive and Unhealthy Risk. 23. For potential problems that have not yet occurred, the right action is A) Reactive action. B) Preventive measures. C) Proactive action. D) Preventive action and proactive action. Show Answer Correct Answer: D) Preventive action and proactive action. 24. What is the second step of the risk management process in Australia/New Zealand Standard AS/NZS 4360? A) Treat risks. B) Evaluate risks. C) Identify risks. D) Analyse risks. Show Answer Correct Answer: C) Identify risks. 25. The final objective of the CIMA risk management cycle is A) Identify risk areas. B) Implement strategy and allocate responsibilities. C) Information for decision making. D) Develop risk and response strategy. Show Answer Correct Answer: C) Information for decision making. 26. Training is a form of Risk Response A) Accept. B) Avoid. C) Transfer. D) Reduce Likelihood. Show Answer Correct Answer: D) Reduce Likelihood. 27. The risk-based audit implemented at PT PJB is a series of Risk Management Frameworks? A) Implementation. B) Design. C) Evaluation. D) Improvement. Show Answer Correct Answer: A) Implementation. 28. The following statements are TRUE about the benefit of ERM EXCEPT? A) ERM provides the overall view of the risks involved promotes accountable risk management process. B) ERM allows better communication, monitoring and control with the engagement of the board of directors, top management, and various risk committees at production level. C) ERM can reduced risks arising from information asymmetry in operational level. D) ERM offers a good check and balance systems to ensure the quality of the bank's assets are protected. Show Answer Correct Answer: B) ERM allows better communication, monitoring and control with the engagement of the board of directors, top management, and various risk committees at production level. 29. What is meant by risk according to ISO 31000:2018? A) The possibility of an event occurring that has an impact on achieving targets. B) B & c are true. C) The possibility of tourism occurring that has an impact on achieving targets. D) Risk is uncertainty that causes losses. Show Answer Correct Answer: B) B & c are true. 30. What are the main functions of management in risk management? A) Evaluate risk management programs. B) Controlling the risk management program. C) Plan a risk management program. D) Implement risk management programs. Show Answer Correct Answer: B) Controlling the risk management program. Next →Related QuizzesFinance QuizzesEnterprise Risk Management Quiz 2Enterprise Risk Management Quiz 3Enterprise Risk Management Quiz 4Enterprise Risk Management Quiz 5Credit Risk Management QuizOperational Risk Management Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books