Risks

What is the first step in managing risk?

• A. Identify Risks
  

• B. Transfer Risks

• C. Review and Align with Strategy

• D. Recognize Strategic Objectives
  

What is NOT one of the four methods for mitigating risk?

• A. Treating (implementing countermeasures)

• B. Transferring (using insurance or contracts)

• C. Ignoring (choosing to do nothing)

• D. Terminating (stopping risky processes)

Which of the following companies failed to manage risk properly?

• A. A retailer that lost 45 million credit card details in a data breach
  

•  B. A software company that upgraded its cybersecurity

• C. A manufacturer that diversified its supply chain
  

• D. A financial institution that followed strict lending guidelines

Which of the following is an external risk?

• A. IT system failures causing service disruptions
  

• B. Workplace accidents in a factory

• C. A natural disaster damaging business infrastructure

• D. Errors in ordering raw materials
  

What is a key reason why companies must continuously review and align risk management with strategy?

• A. To ensure risk management supports changing business objectives

• B. To completely eliminate all risks

• B. To focus only on financial risks

• D. To react to risks only when they occur

7. What is the most critical aspect of strategic risk?
A. Changes in customer demand and competition
B. Workplace safety incidents
C. Currency exchange rate fluctuations
D. Supply chain disruptions

Answer: A. Changes in customer demand and competition

• 
  A. Supply chain disruptions

• B. Changes in customer demand and competition
  

• C. Workplace safety incidents

• B. Currency exchange rate fluctuations

What risk mitigation method involves using contracts or insurance?

• A. Terminating

• B. Tolerating

• C. Treating
  

• D. Transferring

Why did companies in the videocassette industry fail?

• A. They increased investments in technology
  

• B. They secured strong financial backing

• C. They did not adapt to the rise of digital media and streaming
  

• D. They expanded into new global markets
  

Which risk category includes IT failures, supply chain disruptions, and employment risks?

• A. Hazard risk

• B. Operational risk

• C. Financial risk

• D. Strategic risk

Why did reckless risk-taking in the banking industry lead to a global financial crisis?

• A. Banks invested heavily in secure and low-risk assets.

• B. Banks failed to manage and assess the risks of their financial decisions properly.

• C. Governments provided unlimited financial support to banks.

• D. Customers stopped using banking services completely.