This quiz works best with JavaScript enabled. Home > Finance > Risk Management > Enterprise Risk Management – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Enterprise Risk Management Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. THE NATURE OF RISK FOR BANKING INSTITUTIONS CAN BE CATEGORIZED INTO TWO TYPES: A) Systematic risk and unsystematic risk. B) Financial risks and non-financial risks. C) Risk appetite and risk tolerance. D) Credit risk and liquidity risk. Show Answer Correct Answer: B) Financial risks and non-financial risks. 2. ERM is mainly focused on clinical risks such as patient safetyT/F A) Speak. B) True. Show Answer Correct Answer: A) Speak. 3. Programs ..... which are in the form of assets will be proposed to be submitted in the Company/Unit's investment budget, while those which are not in the form of assets will be proposed to be submitted in the operating budget. The proposed operating budget is then proposed to be designated as RKAP/RKAP. The correct answer to fill in the blanks above is? A) Risk Review. B) Risk Control. C) Actual Risk. D) Risk Mitigation. Show Answer Correct Answer: D) Risk Mitigation. 4. Risk can be defined as ..... and severity of the event and undesired consequences of an ..... A) Uncertainties, Activity. B) Doubt, Action. C) Susicion, Act. D) Severity, Event. Show Answer Correct Answer: A) Uncertainties, Activity. 5. The types of risks that can be insured are known as terms. A) Speculative Risk. B) Pure Risk. Show Answer Correct Answer: B) Pure Risk. 6. Below are the Coventional Views on Risk, EXCEPT? A) Risk Transfer. B) Minimise the Risk. C) Eliminating the Risk. D) Risk Sharing. Show Answer Correct Answer: D) Risk Sharing. 7. What is the purpose of risk monitoring, according to HM Treasury's Orange Book? A) To support a detailed consideration of the nature and level of risk. B) To understand how the risk profile is changing and the extent to which internal controls areoperating as intended to provide reasonable assurance over the management of risks toan acceptable level. C) Selecting the most appropriate risk treatment option. D) To review the adequacyand effectiveness of internal controls. Show Answer Correct Answer: B) To understand how the risk profile is changing and the extent to which internal controls areoperating as intended to provide reasonable assurance over the management of risks toan acceptable level. 8. Risk can be measured using two aspects, what are these aspects? A) Likelihood of Occurrence and Impact on targets. B) Inherent Risk dan Target Residual Risk. C) Actual Risk dan Control Risk. D) All answers are correct. Show Answer Correct Answer: A) Likelihood of Occurrence and Impact on targets. 9. The following is a framework for risk management, except..... A) Improvement. B) Feasibility. C) Leadership & commitment. D) Integration. Show Answer Correct Answer: B) Feasibility. 10. Risk Evaluation? Risk =..... *..... A) Probability of the Event * Potential Hazard. B) Probability of the Event * Potential Severity. C) V * S. D) Risk of the Event * Potential Severity. Show Answer Correct Answer: B) Probability of the Event * Potential Severity. 11. A comprehensive risk management program that addresses an organization's pure risks, speculative risks, strategic risks and operational risks is called an Enterprise Risk Management ProgramT/F? A) True. B) Speak. Show Answer Correct Answer: A) True. 12. The following are risk management techniques, EXCEPT: A) Terminate. B) Transpose. C) Treat. D) Transfer. Show Answer Correct Answer: B) Transpose. 13. The main purposes of using a helmet for motorbike drivers are: A) Reduces the possibility of injury if you fall. B) Reduces the impact of injury if you fall. C) Reduces the chance of falling. D) Reduces the possibility of accidents. Show Answer Correct Answer: B) Reduces the impact of injury if you fall. 14. "It is better to deal with Risks than to deal with Problems" . This statement can be supported by the following statement? A) Because, a problem is something that has happened and the action/handling is carried out after the incident which has the possibility that the company will incur greater costs. B) Because risks have not yet occurred and can be identified and the possibility and impact of their occurrence on achievement targets can be minimized before the risk turns into a problem/crisis. C) Answers a & b are wrong. D) Answers a and b are correct. Show Answer Correct Answer: D) Answers a and b are correct. 15. The level of risk that we can still accept is called: A) Risk Accepted. B) Risk Appetite. C) Risk Manageable. D) Risk Level. Show Answer Correct Answer: B) Risk Appetite. 16. Which of the following is not an element of COSO Enterprise Risk Management? A) Enhancing risk response decisions. B) Reducing operating surprises and losses. C) Identification of risks and opportunities affecting achievement of an entity's objectives. D) Improving deployment of information technology. Show Answer Correct Answer: D) Improving deployment of information technology. 17. Bank's Exposure to Risk Stem from Their Unique Position as Financial Intermediaries Between ..... and ..... in The Economic System. A) Fund Provider, Fund User. B) Borrower, Creditor. C) Customer, Depositor. D) Banker, Stakeholder. Show Answer Correct Answer: A) Fund Provider, Fund User. 18. Pure risk is defined as something that can only result in harm or nothing will happen and is unlikely to be profitable. The type of pure risk is..... A) Market Risk. B) Strategy Risk. C) Employee Risk. D) Credit Risk. Show Answer Correct Answer: C) Employee Risk. 19. Risk occurs if we have: A) Employee. B) Activity. C) Budget. D) Objective. Show Answer Correct Answer: D) Objective. 20. What is definition of risk avoidance? A) Risk that can be totally avoided by avoiding the activity or setting that could contribute to the risk. B) Risk that is accepted and management internally rather than passing it to a third parties. C) Risk that refer to diversifying risk by spreading it over multiple assets investment or project. D) None of above. Show Answer Correct Answer: A) Risk that can be totally avoided by avoiding the activity or setting that could contribute to the risk. 21. Loss prevention programs include ..... A) Fire drills. B) Sprinklers. C) Safety equipment. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. The use of Third Party Partners is a form of Risk Response A) Reduce Likelihood. B) Transfer. C) Reduce Impact. D) Avoid. Show Answer Correct Answer: B) Transfer. 23. The Risk Level Classification in the Telkom Impact Table is: A) Very High-High-Low-Very Low. B) Very High-High-Medium-Low-Very Low. C) Very High-Medium-Very Low. D) High-Medium-Low. Show Answer Correct Answer: B) Very High-High-Medium-Low-Very Low. 24. The risk classification in Telkom's Risk Profile is: A) Strategic Risk-Financial Risk-Compliance Risk-HR Risk-Operation Risk. B) Strategic Risk-Financial Risk-Compliance Risk-HR Risk-Operation Risk-IT Risk-Digital Risk. C) Strategic Risk-Financial Risk-Compliance Risk-HR Risk-Operation Risk-IT Risk. D) Strategic Risk-Financial Risk-Compliance Risk-Operation Risk. Show Answer Correct Answer: D) Strategic Risk-Financial Risk-Compliance Risk-Operation Risk. 25. What does Internal Objective functions in COSO ERM Framework A) Facilitate risk aware activities so that employees understand the situations. B) Monitored and modified the risk assessment as necessary. C) Analysing the risk by consider the likelihood impact to the organization. D) Set the basis how risk is viewed and addressed those risk that possibly happen in organization. Show Answer Correct Answer: D) Set the basis how risk is viewed and addressed those risk that possibly happen in organization. 26. The influence of uncertainty on the achievement of company goals or targets is called..... A) Possibility. B) Reason. C) Risk. D) Consequence. Show Answer Correct Answer: C) Risk. 27. One of the definitions regarding the influence of uncertainty on goal achievement refers to A) ISO 30000. B) ISO 20009. C) ISO 31000. D) ISO 22000. Show Answer Correct Answer: C) ISO 31000. 28. What is the definition of risk management strategy? A) Method that enable firms to respond swiftly and efficiently to business risks. B) To diversifying risk by spreading it over multiple assets investment or project. C) Accepted and management internally rather than passing it to a third party. D) None of above. Show Answer Correct Answer: B) To diversifying risk by spreading it over multiple assets investment or project. 29. The acceptable degree of relative variation in the achievement of a goal is the definition of..... A) Risk criteria. B) Risk appetite. C) Risk condition. D) Risk tolerance. Show Answer Correct Answer: D) Risk tolerance. 30. Risks from the internal environment are divided into 5 factors or what are called 5M, including..... A) Man, Method, Material, Mapping and Mind. B) Man, Method, Material, Machine and Mapping. C) Man, Method, Material, Machine and Money. D) Man, Material, Machine, Money and Mind. Show Answer Correct Answer: C) Man, Method, Material, Machine and Money. ← PreviousNext →Related QuizzesFinance QuizzesEnterprise Risk Management Quiz 1Enterprise Risk Management Quiz 2Enterprise Risk Management Quiz 4Enterprise Risk Management Quiz 5Credit Risk Management QuizOperational Risk Management Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books