Check Your Knowledge On Risk Management

10 Questions | Total Attempts: 545

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Check Your Knowledge On Risk Management

Every day people are faced with situations of uncertainty, and they have to come up with ways that they can protect themselves from being in a bad situation or avoiding it from happening. If you expect to be good management, you need to have some information on risk management. Take up the quiz below and get to see just how well you understand the concept.


Questions and Answers
  • 1. 
    What is the first step of the CIMA's risk management cycle?
    • A. 

      Identify risks

    • B. 

      Establish a Risk Management Group

    • C. 

      Gather Information on Risks

    • D. 

      Monitor the process

  • 2. 
    What is the most common risk for a listed company?
    • A. 

      Risk of lack of funds

    • B. 

      Market Risk

    • C. 

      Reputation Risk

    • D. 

      Liquidity Risk

  • 3. 
    What is a numerical measure of risk?
    • A. 

      NPV

    • B. 

      Standard Deviation

    • C. 

      Mean

    • D. 

      IRR

  • 4. 
    What are the parameters for evaluating risks?
    • A. 

      Impact

    • B. 

      Likelihood

    • C. 

      Urgency

    • D. 

      Shareholder Expectation

  • 5. 
    What is not required to implement a Risk Management Process in a company?
    • A. 

      Quality Circles

    • B. 

      Information & Communication

    • C. 

      Resources

    • D. 

      Risk Culture

  • 6. 
    Which method would minimize the business risk?
    • A. 

      Listing

    • B. 

      Product Development

    • C. 

      Diversification

    • D. 

      Premium Pricing

  • 7. 
    What is the most significant risk for an Aircraft manufacturing company?
    • A. 

      Safety Risk

    • B. 

      Liquidity Risk

    • C. 

      Reputation Risk

    • D. 

      Market Risk

  • 8. 
    Risk Management Should be applied when setting ________________ of an organisation.
  • 9. 
    What is not a risk identification technique?
    • A. 

      Brainstorming

    • B. 

      Delphi Method

    • C. 

      Interviews

    • D. 

      Benchmarking

  • 10. 
    What is not an approach to Risk Management?
    • A. 

      HM Treasury's Orange Book

    • B. 

      ACCA's Risk Management Cycle

    • C. 

      CIMA's Risk Management Cycle

    • D. 

      COSO's ERM Frame Work

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