Operational Risk Management Quiz

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| By Higbee
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Higbee
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Quizzes Created: 26 | Total Attempts: 32,477
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  • 1/10 Questions

    The process of dealing with the risk associated with military operations, which include risk assessment, risk decision making, and implementation of effective risk controls is:

    • Operational Rated Management
    • Organized Risk Assessment
    • Operational Risk Management
    • Organized Risk Management
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About This Quiz

Do you know about operational risk management? What is the hazard? What is the definition of risk? Take this operational risk management quiz and check if you already know about the things we asked above. Operational risk management (abbreviated as ORM) is a recurring process that focuses on reporting risk issues. In short, we can say the operational risk is the risk of doing any business. Let's begin the quiz and learn more about it in detail.

Operational Risk Management Quiz - Quiz

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  • 2. 

    Definition of Risk is:

    • The likelihood that a hazard will result in a mishap or loss

    • The likelihood that a hazard will result in a disaster

    • The likelihood that a hazard will result in a favorable outcome

    • The likelihood that a hazard will result in a change in command

    Correct Answer
    A. The likelihood that a hazard will result in a mishap or loss
    Explanation
    The correct answer is the likelihood that a hazard will result in a mishap or loss. This is because risk refers to the possibility or probability of an undesirable event or outcome occurring. In this case, the undesirable event or outcome is a mishap or loss, which can be caused by a hazard. Therefore, risk is the likelihood that a hazard will result in a mishap or loss.

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  • 3. 

    An expression of possible loss in terms of severity and probability is a definition of:

    • Hazard

    • Probability

    • Severity

    • Risk

    Correct Answer
    A. Risk
    Explanation
    Risk is the correct answer because it refers to the expression of possible loss in terms of severity and probability. Risk is a measure of the likelihood and potential impact of an event or action, taking into account both the probability of occurrence and the potential consequences. It involves assessing and managing potential hazards, evaluating their severity and likelihood, and making informed decisions to mitigate or accept the associated risks.

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  • 4. 

    Hazard is defined as:

    • A condition with the potential to cause personal injury or death, property damage,or mission degradation

    • A condition with the potential to cause personal financial loss or property damage or mission degradation

    • A condition with the potential to cause personal injury or death or mission completion

    • A condition with the potential to cause property damage or mission degradation, or a revenue tax increase

    Correct Answer
    A. A condition with the potential to cause personal injury or death, property damage,or mission degradation
    Explanation
    The correct answer is a condition with the potential to cause personal injury or death, property damage, or mission degradation. This definition of hazard encompasses a range of potential consequences, including harm to individuals, damage to property, and negative impacts on mission objectives. It recognizes that hazards can pose risks to both human safety and the successful completion of a mission or task.

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  • 5. 

    Operational Risk Management:

    • Is a decision making tool

    • Increases ability to make informed decisions

    • Reduces risks to acceptable levels

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Operational Risk Management is a comprehensive approach that involves decision making and enables organizations to make informed decisions. By identifying, assessing, and mitigating risks, it helps to reduce risks to acceptable levels. Therefore, the correct answer is "All of the above" as all the statements mentioned are true and describe the benefits and purpose of Operational Risk Management.

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  • 6. 

    The process of detecting hazards and assessing the associated risk is called:

    • The right process

    • Risk assessment

    • Risk Management Process

    • None of the above

    Correct Answer
    A. Risk assessment
    Explanation
    The process of detecting hazards and assessing the associated risk is called risk assessment. It involves identifying potential hazards, evaluating the likelihood and severity of the risks they pose, and determining appropriate measures to mitigate or manage those risks. Risk assessment is an essential step in risk management, as it helps organizations make informed decisions to protect people, assets, and the environment from potential harm.

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  • 7. 

    ORM Levels of application include:

    • Time crtical - On the run consideration of 5 steps

    • Deliberate - Application of the complete 5 step process

    • In-Depth - Complete 5-Step Process with detailed analysis

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The correct answer is "All of the above" because the question states that the ORM Levels of application include time critical, deliberate, and in-depth approaches, each of which involves the complete 5-step process. Therefore, all three options mentioned in the question are correct.

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  • 8. 

    The four ORM Principals are - 1. Accept risk when the benefits outweigh the cost 2. Accept no unnecessary risk 3. Anticipate and manage risk by planning and

    • Make risk decisions at the right level

    • Make risk decisions right away

    • Make no decsions until after talking it over

    • All of the above

    Correct Answer
    A. Make risk decisions at the right level
    Explanation
    The correct answer is "Make risk decisions at the right level" because one of the ORM (Operational Risk Management) principles is to anticipate and manage risk by planning. Making risk decisions at the right level means that decisions should be made by individuals who have the appropriate knowledge and authority to assess and mitigate the risks involved. This ensures that risk management is effective and efficient, as decisions are made by those who are best equipped to understand and address the potential risks.

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  • 9. 

    Causes of risk include all the following except:

    • New Technology

    • Change "The Mother of all Risk"

    • Environmental influences

    • Chemical breakdown

    Correct Answer
    A. Chemical breakdown
    Explanation
    Chemical breakdown is not a cause of risk. The other options, such as new technology, change, and environmental influences, can all contribute to risk. However, chemical breakdown does not directly cause risk.

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  • 10. 

    Operational Risk Management Process includes the I.D of hazards, Assessing the hazards, Making risk decisions, Implement controls, and

    • Take action

    • Re-assessing the process

    • Supervise

    • Both A & B

    Correct Answer
    A. Supervise
    Explanation
    The given answer "Supervise" is the correct answer because it is a step in the Operational Risk Management Process. After implementing controls, it is important to supervise and monitor the effectiveness of those controls to ensure that they are working as intended and that any new risks or hazards are identified and addressed promptly. This step helps in maintaining the effectiveness of the risk management process and ensures ongoing risk mitigation.

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Quiz Review Timeline (Updated): Aug 19, 2023 +

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

  • Current Version
  • Aug 19, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 14, 2009
    Quiz Created by
    Higbee
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