Operational Risk Management Quiz

What is the primary goal of operational risk management?

• To enhance customer satisfaction

• To improve employee retention

• To prevent losses due to unforeseen events

• To increase market share

Which of the following is NOT a type of operational risk?

• People risk

• Market risk

• Process risk

• System risk

How does operational risk management enhance decision-making?

• By reducing employee workload

• By providing methods to assess and mitigate risks

• By increasing product prices

• By improving customer service

What is a benefit of identifying unsafe conditions and practices?

• It reduces product quality

• It increases operational costs

• It helps in preventing damage to property or employee injuries

• It leads to higher employee turnover

How does operational risk management promote product quality?

• By lowering production costs

• By reducing the number of employees

• By managing operational risks in production

• By increasing production speed

What role does transparency play in operational risk management?

• It decreases the need for training

• It reduces employee engagement

• It fosters clear communication between executives and employees

• It increases the complexity of operations

What is the first step in implementing operational risk management?

• Training employees

• Developing a risk measurement scale

• Identifying potential risks

• Assigning a team for risk monitoring

Why is it important to evaluate the impact of identified risks?

• To reduce the need for risk management

• To increase the number of risks

• To improve employee satisfaction

• To assess the likelihood and potential impact on the company

What is the purpose of developing a risk measurement scale?

• To increase the number of risks

• To improve employee morale

• To reduce operational costs

• To prioritize the most critical risks for immediate action

Why is it crucial to involve employees in operational risk management?

• To create a culture of carefulness and proactive risk management

• To improve customer satisfaction

• To increase their workload

• To reduce the need for management oversight