This quiz works best with JavaScript enabled. Home > Risk Management > Enterprise Risk Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Enterprise Risk Management Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. 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. 4. What is the second step of the risk management process in Australia/New Zealand Standard AS/NZS 4360? A) Analyse risks. B) Identify risks. C) Treat risks. D) Evaluate risks. Show Answer Correct Answer: B) Identify risks. 5. What is Hazard? A) Is a condition, property or situation with the potential for loss. B) Risk is a function of the probability of contact with (or exposure to) a hazard. C) Risk evaluation of identified hazards taking into account the existing controls and defences. D) Risk assessment of hazards identified through a review of the potential unsafe-acts. Show Answer Correct Answer: A) Is a condition, property or situation with the potential for loss. 6. 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. 7. Training is a form of Risk Response A) Reduce Likelihood. B) Accept. C) Transfer. D) Avoid. Show Answer Correct Answer: A) Reduce Likelihood. 8. The risk-based audit implemented at PT PJB is a series of Risk Management Frameworks? A) Evaluation. B) Implementation. C) Improvement. D) Design. Show Answer Correct Answer: B) Implementation. 9. 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. 10. What is meant by risk according to ISO 31000:2018? A) The possibility of tourism occurring that has an impact on achieving targets. B) Risk is uncertainty that causes losses. C) The possibility of an event occurring that has an impact on achieving targets. D) B & c are true. Show Answer Correct Answer: D) B & c are true. 11. What are the main functions of management in risk management? A) Plan a risk management program. B) Implement risk management programs. C) Controlling the risk management program. D) Evaluate risk management programs. Show Answer Correct Answer: C) Controlling the risk management program. 12. Which of the following statements refer to Enterprise Risk Management? A) Applicable to financial risk and accidental risk because they are transferable risks. B) Risk Averse. C) Occurs within one business department. D) An integrated approach with a holistic view. Show Answer Correct Answer: D) An integrated approach with a holistic view. 13. Risk Management is the only department involved in ERMT/F A) True. B) False. Show Answer Correct Answer: B) False. 14. Insurance is a form of Risk Response: A) Reduce Likelihood. B) Reduce Impact. C) Transfer. D) Avoid. Show Answer Correct Answer: B) Reduce Impact. 15. Risk Can be Define as ..... and Severity of The Event and Undesired Consequences of an ..... A) Doubt, Action. B) Uncertainties, Activity. C) Susicion, Act. D) Severity, Event. Show Answer Correct Answer: B) Uncertainties, Activity. 16. The following are several stakeholder components that need to be involved/involved in risk mitigation A) Who carries out the risk management process. B) Who carries out risk management evaluations. C) Which ensures that risk management is carried out. D) All are correct. Show Answer Correct Answer: D) All are correct. 17. What is not included in the risk treatment strategy, namely..... A) Sharing/transfer. B) Non Mitigation. C) Acceptance. D) Risk Retention. Show Answer Correct Answer: B) Non Mitigation. 18. What is the purpose of risk management? A) Value creation. B) Protection. C) All wrong. D) All true. Show Answer Correct Answer: D) All true. 19. The framework of COSO's Enterprise Risk Management can best be characterized as: A) Incorporate enhanced corporate governance into internal control principles. B) Incorporate enhanced internal control principles into enhanced corporate governance. C) Incorporate enhanced audit sampling procedures in the testing of internal controls. D) Incorporate enhanced audit sampling procedures in substantive testing. Show Answer Correct Answer: A) Incorporate enhanced corporate governance into internal control principles. 20. The following is a step-by-step approach to risk management, except A) Identification. B) Analysis. C) Evaluation. D) Justification. Show Answer Correct Answer: D) Justification. ← PreviousNext →Related QuizzesEnterprise Risk Management Quiz 1Enterprise Risk Management Quiz 3Enterprise Risk Management Quiz 4Enterprise Risk Management Quiz 5Enterprise Risk Management Quiz 6Enterprise Risk Management Quiz 7Credit Risk Management QuizOperational Risk Management Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books