Operational Risk Management
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Companies that take risks are the ones that become successful. Businesses all over the world are faced with risks every day and overcoming the risks is what defines success. Operational risk management is therefore of essence and is tested below.
- 1.Hazard is defined as
- A.
A condition with the potential to cause personal injury or death, property damage or mission degradation
- B.
A condition with the potential to cause personal financial loss or property damage or mission degradation
- C.
A condition with the potential to cause personal injury or death or mission completion
- D.
A condition with the potential to cause property damage or mission degradation, or a revenue tax increase
- 2.An expression of possible loss in terms of severity and probability is a definition of
- A.
Hazard
- B.
Probability
- C.
Severity
- D.
Risk
- 3.Defintion of Risk is
- A.
The likelihood that a hazard will result in a mishap or loss
- B.
The likelihood that a hazard will result in a disaster
- C.
The likelihood that a hazard will result in a favorable outcome
- D.
The likelihood that a hazard will result in a change in command
- 4.The process of detecting hazards and assessing the associated risk is called
- A.
The right process
- B.
Risk assessment
- C.
Risk Management Process
- D.
None of the above
- 5.The process of dealing with risk associated with military operations, which include risk assessment, risk decision making, and implementation of effective risk cntrols is
- A.
Operational Rated Management
- B.
Organized Risk Assessment
- C.
Operational Risk Management
- D.
Organized Risk Management
- 6.Operational Risk Management Process includes the I.D of hazards, Assessing the hazards, Making risk decisions, Implement controls, and
- A.
Take action
- B.
Re-assessing the process
- C.
Supervise
- D.
Both A & B
- 7.Operational Risk Management
- A.
Is a decision making tool
- B.
Increases ability to make informed decisions
- C.
Reduces risks to acceptable levels
- D.
All of the above
- 8.Causes of risk include all the following except
- A.
New Technology
- B.
Change "The Mother of all Risk"
- C.
Environmental influences
- D.
Chemical breakdown
- 9.The four ORM Principals are - 1. Accept risk when the benefits out weigh the cost2. Accept no unnecessary risk3. Anticipate and manage risk by planningand
- A.
Make risk decisions at the right level
- B.
Make risk decisions right away
- C.
Make no decsions until after talking it over
- D.
All of the above
- 10.ORM Levels of application include
- A.
Time crtical - On the run consideration of 5 steps
- B.
Deliberate - Application of the complete 5 step process
- C.
In-Depth - Complete 5-Step Process with detailed analysis
- D.
All of the above
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