This quiz works best with JavaScript enabled. Home > Risk Management > Enterprise Risk Management – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Enterprise Risk Management Quiz 7 (17 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT included in HM Treasury's Orange Book risk management process? A) Risk identification and assessment. B) Risk monitoring. C) Risk treatment. D) Risk profile. Show Answer Correct Answer: D) Risk profile. 2. What is the main responsibilities of Chief Operating Officer A) Develop the Risk Management policy and keep it up-to-date. B) Cooperate with management on incident investigations. C) Report loss events and near-miss accidents. D) Cooperate with management on incident investigations. Show Answer Correct Answer: A) Develop the Risk Management policy and keep it up-to-date. 3. Risk treatment options that can be used to manage risk are as follows except..... A) Accepting Risk. B) Reducing Risk. C) Identifying Risks. D) Transferring Risk. Show Answer Correct Answer: C) Identifying Risks. 4. What are examples of the consequences of poor risk management? A) Baring Bank went bankrupt due to the Kobe earthquake. B) Long Term Capital because the Russian currency is quite large. C) S&L associations face problems and bankruptcy due to short-term home loans. D) Bank Duta suffered huge losses because it did not trade forex. Show Answer Correct Answer: A) Baring Bank went bankrupt due to the Kobe earthquake. 5. The benefits of implementing ERM are several points below, except A) Improve the 3 C's and be more proactive. B) Weaken departments that are at risk. C) Anticipate risks early. D) Protect and secure the company's reputation. Show Answer Correct Answer: B) Weaken departments that are at risk. 6. A document containing a list of risks that have been identified along with the results of their assessment and handling related to activities or activities in a unit: A) Risk document. B) Risk Map. C) Risk Response. D) Risk Register. Show Answer Correct Answer: D) Risk Register. 7. Some risk management options (risk response) are: A) Accepting risks, avoiding risks, sharing risks with third parties. B) Avoiding risks, reducing the possibility of risks occurring, sharing risks with third parties. C) Accepting risk, avoiding risk, reducing the possibility of risk occurring, reducing the impact of risk occurring, sharing risk with third parties. D) Avoiding risks, reducing the possibility of risks occurring, reducing the impact of risks, sharing risks with third parties. Show Answer Correct Answer: C) Accepting risk, avoiding risk, reducing the possibility of risk occurring, reducing the impact of risk occurring, sharing risk with third parties. 8. Activities in managing risks by identifying, analyzing, assessing, minimizing and trying to eliminate unwanted risks are A) Understanding Risk Management. B) Risk Management Function. C) Risk Management Process. D) Risk Management Objectives. Show Answer Correct Answer: A) Understanding Risk Management. 9. Risk ..... is a risk that is considered to hinder the achievement of targets, and the existing control mechanisms are not sufficient to control this risk. Mitigation steps are needed to at least reduce the level to...... Fill in the blanks below, which answer is appropriate? A) Moderate and Low. B) Extreme & Moderate. C) High and Moderate. D) High & Low. Show Answer Correct Answer: C) High and Moderate. 10. Some ways to manage risk are ..... A) Loss prevention programs. B) Controlling risk. C) Safety equipment. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Outsourcing some of your company's work can be a way of ..... risk. A) Taking. B) Terminating. C) Transferring. D) Treating. Show Answer Correct Answer: C) Transferring. 12. What is the definition of organizational risk management? A) A comprehensive system for managing risk to increase organizational value. B) The process of identifying, evaluating and managing risks. C) Risk management program planning, implementation and control system. D) A framework for maximizing organizational value. Show Answer Correct Answer: A) A comprehensive system for managing risk to increase organizational value. 13. What Are the Main Objective of Islamic Financial Institutions in Regard to Risk Management? A) To Maximise Profit and Shareholder Value by Providing Different Financial Services Mainly by Managing Risks Within Shariah Parameter. B) To Understand the Risk or Return Trade-Off. C) To Utilising Financial Products to Hedge Against Risk (Such as Using Options, Futures, Insurance). D) To Have Proper Valuation Methodologies to Assess Quality of Investments and Determine the Allocations and Expected Returns. Show Answer Correct Answer: A) To Maximise Profit and Shareholder Value by Providing Different Financial Services Mainly by Managing Risks Within Shariah Parameter. 14. Failure of the borrower to pay its debt obligation may refer to? A) Solvency Risk. B) Credit Risk. C) Liquidity Risk. D) Interest Rate risk. Show Answer Correct Answer: B) Credit Risk. 15. The risk management process based on ISO 31000:2018, consists of 6 processes, namely, except A) Communication and consultation. B) Risk control. C) Monitoring and review. D) Risk assessment, risk treatment. Show Answer Correct Answer: B) Risk control. 16. The level of risk is assessed taking into consideration A) Likelihood/Probability. B) Impact. C) Cause of occurrence. D) Likelihood/Probability and Impact/Impact. Show Answer Correct Answer: D) Likelihood/Probability and Impact/Impact. 17. The following are the stages of risk management, except..... A) Getting commitment. B) Create business plan. C) Implementation program. D) Monitoring, review, & improve. Show Answer Correct Answer: B) Create business plan. ← PreviousRelated QuizzesEnterprise Risk Management Quiz 1Enterprise Risk Management Quiz 2Enterprise Risk Management Quiz 3Enterprise Risk Management Quiz 4Enterprise Risk Management Quiz 5Enterprise Risk Management Quiz 6Credit Risk Management QuizOperational Risk Management Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books