Business Risk Types

What is the first step in managing risk within an organization?

• Performing a risk assessment on everything

• Creating a risk assessment schedule

• Identifying internal and external systems

• Developing an operational framework

What should a successful risk assessment process align with?

• Business goals

• External threats

• Digital advancements

• Operational effectiveness

What is strategic risk related to?

• Violations of laws

• Negative public opinion

• Adverse business decisions

• Loss resulting from inadequate internal processes

What does reputational risk relate to?

• Service or product delivery problems

• External events

• Inadequate resource allocation

• Negative public opinion

What is operational risk associated with?

• Violations of internal policies

• Loss resulting from inadequate or failed internal processes

• Adverse effects of foreign exchange rate fluctuations

• Problems with service or product delivery

What can compliance risk result from?

• Violations of laws, rules, or regulations

• Negative public opinion

• Adverse business decisions

• Loss resulting from inadequate internal processes

What is the purpose of developing an operational framework?

• To maintain operational effectiveness

• To reduce risks cost-effectively

• To identify critical internal and external systems

• To perform a risk assessment on everything

What does transactional risk relate to?

• Problems with service or product delivery

• Loss resulting from inadequate internal processes

• Adverse business decisions

• Negative public opinion

Why can't an organization realistically perform a risk assessment on everything?

• Due to limited resources

• To maintain operational effectiveness

• Because it's not cost-effective

• All of the above

What should the results of a risk assessment provide?

• Identification of all potential threats

• A schedule for future risk assessments

• A practical and cost-effective plan to protect assets

• A plan to eliminate all risks