Ranking Risk And Controls! Trivia Questions! Quiz

1. What is the definition of Residual Risk?

A.The risk that an activity would pose if there are no controls in place

B.The risk that an activity would pose in a maximized control environment

C.The risk that remains after controls are taken into account

D.The risk that remains before controls are taken into account

Residual Risk refers to the risk that remains after controls or mitigation measures have been implemented. It represents the level of risk that exists despite the presence of controls. This means that even though efforts have been made to reduce or eliminate risks, there is still a certain level of risk that remains. This residual risk needs to be carefully managed and monitored to ensure that it does not exceed acceptable levels.

Explanation

Residual Risk refers to the risk that remains after controls or mitigation measures have been implemented. It represents the level of risk that exists despite the presence of controls. This means that even though efforts have been made to reduce or eliminate risks, there is still a certain level of risk that remains. This residual risk needs to be carefully managed and monitored to ensure that it does not exceed acceptable levels.

2. What type of control is a CCTV (close circuit tv) that is located at an ATM machine?

A.House keeping

B.Manage

C.Contingency

D.Monitoring

A CCTV located at an ATM machine serves the purpose of monitoring the area and capturing video footage for security purposes. It allows for real-time observation of activities happening around the ATM machine, ensuring the safety of users and deterring potential criminal activities. Therefore, the correct answer is d. Monitoring.

Explanation

A CCTV located at an ATM machine serves the purpose of monitoring the area and capturing video footage for security purposes. It allows for real-time observation of activities happening around the ATM machine, ensuring the safety of users and deterring potential criminal activities. Therefore, the correct answer is d. Monitoring.

3. What type of control is Vehicle insurance?

A.Monitoring

B.Housekeeping

C.Manage

D.Contingency

Vehicle insurance is considered a contingency control because it is a measure taken to mitigate the potential risks and losses associated with owning and operating a vehicle. It provides financial protection in the event of accidents, theft, or other damages to the vehicle. Contingency controls are implemented to address unforeseen events and minimize their impact on an organization or individual. Vehicle insurance serves as a contingency plan to cover unexpected expenses and ensure that individuals are not financially burdened by unforeseen circumstances related to their vehicles.

Explanation

Vehicle insurance is considered a contingency control because it is a measure taken to mitigate the potential risks and losses associated with owning and operating a vehicle. It provides financial protection in the event of accidents, theft, or other damages to the vehicle. Contingency controls are implemented to address unforeseen events and minimize their impact on an organization or individual. Vehicle insurance serves as a contingency plan to cover unexpected expenses and ensure that individuals are not financially burdened by unforeseen circumstances related to their vehicles.

4. What is the definition of Risk?

A.Occurs only in exceptional circumstances

B.Anything that will prevent you from achieving your goals and objective

C.An activity that would pose if no controls are in place

D.All statements a, b, and c are true

The definition of risk is encompassed by all of the statements a, b, and c. Risk can occur in exceptional circumstances, it can be anything that prevents you from achieving your goals and objectives, and it is an activity that would pose a threat if no controls are in place. Therefore, all of these statements are true in defining risk.

Explanation

The definition of risk is encompassed by all of the statements a, b, and c. Risk can occur in exceptional circumstances, it can be anything that prevents you from achieving your goals and objectives, and it is an activity that would pose a threat if no controls are in place. Therefore, all of these statements are true in defining risk.

5. What type of control is used for risks which must be focused upon continuously by top management to minimize the likelihood of them occurring and the impact of them if they occur?

A.Monitoring

B.House keeping

C.Manage

D.Contingency

The correct answer is "c. Manage." This type of control refers to actively overseeing and handling risks on an ongoing basis. It involves continuous monitoring, assessment, and decision-making by top management to minimize the likelihood of risks occurring and to mitigate their impact if they do occur. This control ensures that risks are effectively managed and that appropriate actions are taken to prevent or address any potential negative consequences.

Explanation

The correct answer is "c. Manage." This type of control refers to actively overseeing and handling risks on an ongoing basis. It involves continuous monitoring, assessment, and decision-making by top management to minimize the likelihood of risks occurring and to mitigate their impact if they do occur. This control ensures that risks are effectively managed and that appropriate actions are taken to prevent or address any potential negative consequences.