Risk Management & Business Continuity Flashcards
6 cards from real ALISON practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Risk Management & Business Continuity flashcards as text
What is the first step in the risk management process?
Answer: Risk identification — recognizing potential threats and vulnerabilities
Risk identification is the critical first step in risk management, involving systematic recognition and documentation of potential threats and vulnerabilities.
What does a risk matrix assess?
Answer: The probability and impact of identified risks
A risk matrix evaluates risks based on two dimensions: the probability (likelihood) of occurrence and the potential impact (severity) if the risk materializes.
Which risk response strategy involves reducing the likelihood or impact of a risk?
Answer: Risk mitigation
Risk mitigation involves taking proactive steps to reduce either the probability of a risk occurring or its potential impact if it does occur.
What is the purpose of a risk register?
Answer: To document, track, and manage all identified risks throughout a project or operation
A risk register is a living document that records all identified risks, their assessments, response plans, and status updates throughout the lifecycle of a project or operation.
What distinguishes inherent risk from residual risk?
Answer: Inherent risk exists before controls; residual risk remains after controls are applied
Inherent risk is the level of risk present before any controls are implemented, while residual risk is the level that remains after controls and mitigations are applied.
Why is regular risk reassessment important?
Answer: Because the risk landscape changes as conditions, activities, and environments evolve
Regular risk reassessment is essential because risks are dynamic — new threats emerge, existing risks change in severity, and the effectiveness of controls may vary over time.