Risk Management Quiz

What is the process of measuring or assessing risk and developing strategies to manage it?

• Risk Avoidance

• Risk Reduction

• Risk Sharing

• Risk Management Defined

According to ISO 31000, what is Risk Management?

• Avoidance of all risks

• Identification, assessment, and prioritization of risks followed by coordinated application of resources

• Accepting all risks

• Sharing risks with competitors

What is the purpose of the International Organization of Standardization (ISO)?

• Promoting political agendas

• Regulating global trade

• Providing financial services

• Developing international standards for various fields

What are the basic principles of Risk Management?

• Risk Avoidance, Risk Reduction, Risk Sharing, Risk Retention

• Establishing the context, Identifying potential risks, Risk Assessment

• Risk Management Defined, Elements of Risk Management, Relevant Risk Terminologies

• Risk Assessment, Risk Identification, Risk Treatment, Risk Monitoring

What is the purpose of Risk Reduction in Risk Management?

• To increase the severity of potential losses

• To ignore risks and accept all consequences

• To optimize risks by finding a balance

• To avoid all risks completely

What is the main focus of Risks Associated with Investments?

• Market Risk

• Management Risk

• Purchasing Power Risk

• Financial Risk

What are the steps in the Risk Management Process?

• Set up a risk management committee, Assess the formal system, Evaluate the effectiveness, Hire experts

• Establishing the context, Identifying potential risks, Risk Assessment, Risk Monitoring

• Set up a committee, Ensure a formal system, Assess processes, Evaluate effectiveness

• Assessing management strategies, Designing risk management capabilities, Monitoring performance

What is the purpose of Risk Sharing in Risk Management?

• To reduce the severity of potential losses

• To retain all risks by default

• To share the burden of loss or gain with another party

• To avoid all risks completely

What are the Risks Associated with Financial Institutions?

• Financial Risk, Non-Financial Risk

• Market Risk, Management Risk, Purchasing Power Risk

• Business Risk, Default Risk, Financial Risk

• Interest Rate Risk, Liquidity Risk, Management Risk

What is the purpose of Risk Retention in Risk Management?

• To avoid all risks completely

• To accept the loss or benefit of gain from a risk

• To share the burden of loss or gain with another party

• To reduce the severity of potential losses