Business Quiz: Key Principle Of Risk Management Programs

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| By Mekaelejigu
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Mekaelejigu
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Quizzes Created: 12 | Total Attempts: 14,093
| Attempts: 529
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  • 1/10 Questions

    Alan is the security manager for a mid-sized business. The company has suffered several serious data losses when mobile devices were stolen. Alan decides to implement full disk encryption on all mobile devices. What risk response did Alan take?

    • Reduce
    • Transfer
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About This Quiz

Risk management is an area of knowledge that most managers are expected to understand to a certain level. Effective risk management ensures the continuity of a business's operations. There are different vital principles when it comes to risk management programs. Test your understanding of said principles by taking the quiz below and sharing it with the rest of your classmates.

Business Quiz: Key Principle Of Risk Management Programs - Quiz

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  • 2. 

    Joe is responsible for the security of the industrial control systems for a power plant. What type of environment does Joe administer?

    • Supervisory Control and Data Acquisition (SCADA)

    • Embedded

    • Mobile

    • Mainframe

    Correct Answer
    A. Supervisory Control and Data Acquisition (SCADA)
    Explanation
    Joe administers the environment of Supervisory Control and Data Acquisition (SCADA). SCADA systems are used to monitor and control industrial processes, such as power plants. They provide real-time data and allow operators to remotely control and manage the systems. Therefore, Joe's responsibility for the security of the industrial control systems for a power plant indicates that he administers the SCADA environment.

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  • 3. 

    Adam is evaluating the security of a web server before it goes live. He believes that an issue in the code allows an SQL injection attack against the server. What term describes the issue that Adam discovered?

    • Threat

    • Vulnerability

    • Risk

    • Impact

    Correct Answer
    A. Vulnerability
    Explanation
    The term that describes the issue that Adam discovered is "vulnerability." A vulnerability refers to a weakness or flaw in a system or software that can be exploited by attackers. In this case, Adam believes that there is a vulnerability in the code of the web server that allows for an SQL injection attack. This means that the server is susceptible to having malicious SQL code injected into its database, potentially leading to unauthorized access or data manipulation.

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  • 4. 

    Adam's company recently suffered an attack where hackers exploited an SQL injection issue on their web server and stole sensitive information from a database. What term describes this activity?

    • Event

    • Outage

    • Incursion

    • Incident

    Correct Answer
    A. Incident
    Explanation
    The term "incident" describes the activity where hackers exploited an SQL injection issue on Adam's company's web server and stole sensitive information from a database. An incident refers to any event that disrupts the normal functioning of a system or compromises its security. In this case, the SQL injection attack and data theft qualify as an incident.

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  • 5. 

    Kim is the risk manager for a large organization. She is evaluating whether the organization should purchase a fire suppression system. She consulted a variety of subject matter experts and determined that there is a 1 percent chance that a fire will occur in a given year. If a fire occurred, it would likely cause $2 million in damage to the facility, which has a $10 million value. Given this scenario, what is the exposure factor?

    • 1 percent

    • 10 percent

    • 20 percent

    • 50 percent

    Correct Answer
    A. 20 percent
    Explanation
    The exposure factor refers to the percentage of loss that would occur if a specific risk event were to happen. In this scenario, the exposure factor can be calculated by dividing the potential damage caused by a fire ($2 million) by the value of the facility ($10 million) and multiplying by 100 to get a percentage. Therefore, the exposure factor is 20 percent.

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  • 6. 

    Beth is conducting a risk assessment. She is trying to determine the impact a security incident will have on the reputation of her company. What type of risk assessment is best suited to this type of analysis?

    • Quantitative

    • Financial

    • Qualitative

    • Objective

    Correct Answer
    A. Qualitative
    Explanation
    A qualitative risk assessment is best suited to determine the impact a security incident will have on the reputation of a company. This type of analysis focuses on gathering and evaluating subjective information, such as opinions, perceptions, and qualitative data, rather than relying on numerical values or financial measurements. By considering factors such as public perception, brand image, and stakeholder trust, a qualitative risk assessment can provide a comprehensive understanding of the potential reputation damage that may result from a security incident.

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  • 7. 

    Purchasing an insurance policy is an example of the ____________ risk management strategy.

    • Reduce

    • Transfer

    • Accept

    • Avoid

    Correct Answer
    A. Transfer
    Explanation
    Purchasing an insurance policy is an example of the transfer risk management strategy because it involves transferring the financial risk of potential losses to the insurance company. By paying premiums, the individual or organization transfers the responsibility of bearing the financial burden of an uncertain event to the insurer. In case of any covered loss or damage, the insurance company will compensate the policyholder, thus reducing their financial risk.

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  • 8. 

    What is a key principle of risk management programs?

    • Security controls should be protected through the obscurity of their mechanisms.

    • Don't spend more to protect an asset than it is worth.

    • Apply controls in ascending order of risk.

    • Risk avoidance is superior to risk mitigation.

    Correct Answer
    A. Don't spend more to protect an asset than it is worth.
    Explanation
    The key principle of risk management programs is to not spend more to protect an asset than it is worth. This means that organizations should carefully evaluate the value of their assets and the potential impact of risks before investing in expensive security measures. It emphasizes the importance of cost-benefit analysis and ensuring that the cost of implementing controls is justified by the value of the asset being protected. This principle helps organizations prioritize their resources and make informed decisions to effectively manage risks.

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  • 9. 

    Kim is the risk manager for a large organization. She is evaluating whether the organization should purchase a fire suppression system. She consulted a variety of subject matter experts and determined that there is a 1 percent chance that a fire will occur in a given year. If a fire occurred, it would likely cause $2 million in damage to the facility, which has a $10 million value. Given this scenario, what is the single loss expectancy (SLE)?

    • 2,000

    • 20,000

    • 200,000

    • 2,000,000

    Correct Answer
    A. 2,000,000
    Explanation
    The single loss expectancy (SLE) is calculated by multiplying the asset value by the probability of a loss occurring. In this scenario, the asset value is $10 million and the probability of a fire occurring is 1 percent. Therefore, the SLE would be $10 million x 0.01 = $2 million.

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  • 10. 

    Kim is the risk manager for a large organization. She is evaluating whether the organization should purchase a fire suppression system. She consulted a variety of subject matter experts and determined that there is a 1 percent chance that a fire will occur in a given year. If a fire occurred, it would likely cause $2 million in damage to the facility, which has a $10 million value. Given this scenario, what is the annualized loss expectancy (ALE)?

    • 2,000

    • 20,000

    • 200,000

    • 2,000,000

    Correct Answer
    A. 20,000
    Explanation
    The annualized loss expectancy (ALE) is calculated by multiplying the probability of an event occurring by the potential loss if the event does occur. In this case, the probability of a fire occurring is 1 percent (0.01) and the potential loss is $2 million. Therefore, the ALE would be 0.01 x $2 million = $20,000.

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 15, 2018
    Quiz Created by
    Mekaelejigu
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