This quiz works best with JavaScript enabled. Home > Risk Management > Enterprise Risk Management – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Enterprise Risk Management Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. There are several benefits from managing Enterprise Risk Management (ERM), except: A) Companies can identify potential risks that may arise and can influence or thwart the achievement of company targets. B) The resources required for risk treatment can be managed effectively & efficiently and avoid greater impacts/losses. C) Risk management can eliminate risks in a company/entity. D) Can avoid greater impacts/losses. Show Answer Correct Answer: C) Risk management can eliminate risks in a company/entity. 2. Things that can pose a risk are..... A) Security. B) Control. C) Objective. D) Reason. Show Answer Correct Answer: D) Reason. 3. Some points of communication and consultation objectives are: A) Bringing together several different skills to complete the risk management process. B) Ensure that different views are taken into account when defining risk criteria and when evaluating risks. C) All true. D) All wrong. Show Answer Correct Answer: C) All true. 4. In implementing Risk Management, Risk is managed and becomes the responsibility of: A) Corporate Risk management unit. B) Corporate Planning management unit. C) Each Unit. D) Company Directors. Show Answer Correct Answer: C) Each Unit. 5. Risk management planning starts from? A) Create a vision, mission, target setting and feedback. B) Evaluation of feedback reporting. C) Identification of measurement evaluation. D) Create a vision, mission and goals. Show Answer Correct Answer: D) Create a vision, mission and goals. 6. What is not included in the principles of Risk Management based on ISO 31000 is..... A) Integrated in organizational processes. B) Reducing uncertainty. C) Has a unique design. D) Transparent and inclusive. Show Answer Correct Answer: D) Transparent and inclusive. 7. ERM is about managing risks reactivelyT/F? A) True. B) Speak. Show Answer Correct Answer: B) Speak. 8. According to the old perspective, what is the relationship between risk and return? A) Higher risk yields higher returns. B) Insufficient risk-taking results in higher returns. C) Optimal risk taking results in higher returns. D) Excessive risk taking results in higher returns. Show Answer Correct Answer: A) Higher risk yields higher returns. 9. Financial risk is refer to ..... A) The risk of failure of one bank due to the failure of another banks or a group of banks fail due to contagion effect. B) Total risk comprises systematic risk and unsystematic risk as postulated by capital asset pricing model. C) Risks originating from banking activities such as credit risk from lending activities, liquidity risk from the bank's inability to meet claims and immediate obligations due to liquidity constraints. D) Types of risks which are within the control of the banks to manage. Show Answer Correct Answer: C) Risks originating from banking activities such as credit risk from lending activities, liquidity risk from the bank's inability to meet claims and immediate obligations due to liquidity constraints. 10. The following is a risk evaluation action, and can produce several things as follows A) No need to do anything; take care of existing control. B) Considering treatment options for risks; reconsider the objectives that have been set. C) Conduct further analysis to better understand the risks. D) All are correct. Show Answer Correct Answer: D) All are correct. 11. A risk strategy by which the company concerned handles its own risks is called..... A) Risk Retention. B) Risk Transfer. C) Risk Control. D) Risk Avoidance. Show Answer Correct Answer: A) Risk Retention. 12. Loss prevention programs are a way of ..... risk. A) Taking. B) Avoiding. C) Reducing. D) Uncontrollable risk. Show Answer Correct Answer: C) Reducing. 13. Risks related to organizational goals can be risks: A) Operational risk. B) Strategic risk. C) Human Capital Risk. D) Regulatory and lawsuit risks. E) Risk Fraud. Show Answer Correct Answer: B) Strategic risk. 14. The difference between a problem and a more precise risk is A) A problem is a risk event that has not yet occurred, a risk is still a potential event that may occur in the future. B) A problem is a risk event that has already occurred and the impact is already being felt. While risk is still a potential event that may occur in the future. C) 1 and 2 are correct. D) 1 and 2 are wrong. Show Answer Correct Answer: B) A problem is a risk event that has already occurred and the impact is already being felt. While risk is still a potential event that may occur in the future. 15. Risk appetite is the amount of risk an entity is willing to take entirely. Which of these following statements is TRUE? A) There is fixed amount on risk appetite. B) Risk appetites change due to changing market environment. C) Risk appetite reflects the attitude towards risk mitigation. D) A larger risk appetite indicates that a bank is taking smaller risks. Show Answer Correct Answer: B) Risk appetites change due to changing market environment. 16. The effect of uncertainty on achieving company goals or targets is called: A) Past conditions. B) Possibility. C) Risk. D) Impact. Show Answer Correct Answer: C) Risk. 17. Risk appetite refers to ..... or ..... of risk a bank is willing to take in order to meet its strategic objectives A) Amount, level. B) Amount, percentage. C) Tolerance, type. D) Tolerance, level. Show Answer Correct Answer: A) Amount, level. 18. The implementation of Enterprise Risk Management causes the achievement of objectives to be: A) Hampered. B) Longer. C) Safer. D) Faster. Show Answer Correct Answer: C) Safer. 19. ..... risk involves storms and other acts of nature that are beyond anyone's control. A) Human. B) Natural. C) Speculative. D) Economic. Show Answer Correct Answer: B) Natural. 20. What is the meaning of Dynamic from the Risk Management principle? A) Managing risk management properly and correctly. B) Managing risk management by anticipating each company and adapting to conditions. C) Structured and systematic risk management. D) Cost-based risk management. Show Answer Correct Answer: B) Managing risk management by anticipating each company and adapting to conditions. ← PreviousNext →Related QuizzesEnterprise Risk Management Quiz 1Enterprise Risk Management Quiz 2Enterprise 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