Quiz 3

Inherent risk refers to the exposure arising from a specific risk before an action is to be made by a risk manager.

• True

• False

Preventive Strategy are proactive measures to eliminate or reduce the likelihood of risks occurring through process improvements, redundancies, and training.

• True

• False

Risk avoidance is the elimination of hazards, activities and exposures that can negatively affect an organization's assets.

• True

• False

Risk reduction is about reducing the risk level through minimizing either the likelihood or the consequence of a specific task through the implementation of precautionary measures, risk controls or treatments

• True

• False

Risk transfer is a risk that can also be partially or completely transferred to a third party.

• True

• False

Events of uncertain or unpredictable root cause are CERTAIN events or set of events that can affect the objectives of a project and may contribute to its success or failure

• True

• False

When it comes to Credit Risks, a lender may RECEIVE the owed principal and interest, which results a stable cash flow and decreased costs for collection

• True

• False

Accidents are INTENDED event or series of events that results in death, injury, loss of system or service, or environmental damage.

• True

• False

Legal Liabilities are held ILLEGALLY responsible for injuring or financially harming another party

• True

• False

Uncertainty in Financial Markets is a PLENTY of sureness of a business's financial future

• True

• False