Strategic Risk Management Quiz

What is strategic risk?

• The likelihood of meeting financial targets

• The probability of the organization’s strategy failing

• The risk associated with employee turnover

• The estimation of project costs

What does strategic risk management involve?

• Monitoring employee performance

• Recognizing risks, identifying their causes and effects, and mitigating them

• Calculating operational budgets

• Developing competitive products

Which of the following is NOT a type of risk?

• Reputational risk

• Financial risk

• Customer preference risk

• Operational risk

What is the focus of proactive risk management?

• Reacting to risks as they occur

• Eliminating all risks from an organization

• Identifying potential risks before they occur and taking preventive action

• Managing the consequences of previous risks

Which is NOT a common risk management challenge in schools?

• Staff hiring and supervision risks

• Cybersecurity and data privacy risks

• Student and staff safety

• Marketing and advertising risks

Which of the following is a principle of proactive risk identification?

• Principle of Data Protection

• Principle of Early Identification

• Principle of Cost Optimization

• Principle of Authority

What is the first step in developing a proactive risk management plan?

• Develop risk mitigation strategies

• Evaluate and prioritize risks

• Identify and categorize potential risks

• Implement control measures

What does the risk management method of avoidance aim to do?

• Transfer risks to other entities

• Eliminate exposure to risks entirely

• Retain risks for cost-effectiveness

• Create contingency plans for risks

When might an organization choose risk retention?

• When transferring the risk is too expensive

• When risks are unavoidable or minor and can be managed internally

• When there is no impact of the risk

• When the risk severity is unknown

What is the purpose of contingency planning?

• Avoiding all potential risks

• Preparing for, responding to, and recovering from unexpected events

• Calculating the financial impact of risks

• Eliminating risks permanently