Understanding Risk Management: Identifying, Mitigating, and Monitoring Risks

Risk management involves identifying and reducing threats, uncertainties, or unfavorable events that could affect company performance. It includes identifying risks, avoiding or tolerating them, and following a process of analyzing operations, identifying risks, developing mitigation plans, implementing them, and monitoring for risk events to adjust accordingly.

What is the primary goal of risk management?

• To increase company profits

• To identify and reduce threats and uncertainties

• To improve employee satisfaction

• To enhance product quality

Which of the following is NOT a focus of risk management?

• Tolerating unavoidable risks

• Eliminating all risks

• Avoiding risks

• Identifying risks

How does risk management handle unavoidable risks?

• By transferring them

• By eliminating them

• By tolerating them

• By ignoring them

What is the first step in the risk management process?

• Adjusting strategies

• Monitoring for risk events

• Analyzing company operations

• Implementing a mitigation plan

What should be done after implementing a risk mitigation plan?

• Celebrate success

• Stop all operations

• Monitor for risk events

• Forget about the risk