Algorithms Risk Assessment & Management 2

Question 1

Which risk metric combines the probability of a threat occurring with the magnitude of its potential impact?

Accepted Answer

Risk exposure

Answer

Risk exposure (also called expected loss) multiplies probability by impact magnitude to produce a single quantitative risk score.

Question 2

A software team uses Monte Carlo simulation during project planning. What risk management purpose does this serve?

Accepted Answer

Producing probabilistic estimates of cost and schedule outcomes

Answer

Monte Carlo simulation runs thousands of scenarios with sampled inputs to generate probability distributions for outcomes like project completion date.

Question 3

In a risk register, what does the 'residual risk' entry represent?

Accepted Answer

Risk remaining after controls have been applied

Answer

Residual risk is the level of risk that persists after mitigation controls have been implemented and accepted by the organization.

Question 4

An algorithm processes financial transactions and occasionally produces incorrect results on inputs with extreme values. What type of risk does this represent?

Accepted Answer

Operational risk

Answer

Operational risk arises from failures in internal processes, systems, or algorithms that cause losses during normal business operations.

Question 5

Which qualitative risk assessment technique uses a structured group process to systematically elicit expert judgments while avoiding groupthink?

Accepted Answer

Delphi method

Answer

The Delphi method anonymizes expert responses across iterative rounds, reducing bias and social pressure that can distort group risk estimates.

Algorithms Practice Test

Algorithms Practice Test

Algorithms Risk Assessment & Management 2