Analogy Risk Management & Mitigation 3 — Questions and Answers
Question 1: RISK APPETITE is to ORGANIZATION as SPEED LIMIT is to:
- Highway (Correct answer)
- Driver
- Car
- Traffic
Correct answer: Highway
Risk appetite defines the level of risk an organization is willing to accept, just as a speed limit defines the maximum speed permitted on a highway.
Question 2: ROOT CAUSE ANALYSIS is to PAST FAILURE as RISK ASSESSMENT is to:
- Future threat (Correct answer)
- Current budget
- Past success
- Team performance
Correct answer: Future threat
Root cause analysis examines past failures to learn from them, while risk assessment looks forward to identify and evaluate future threats.
Question 3: DIVERSIFICATION is to INVESTMENT PORTFOLIO as REDUNDANCY is to:
- IT systems (Correct answer)
- Stock markets
- Bank accounts
- Financial advisors
Correct answer: IT systems
Diversification reduces risk in an investment portfolio by spreading assets, just as redundancy reduces risk in IT systems by duplicating critical components.
Question 4: RISK TOLERANCE is to RISK APPETITE as SPEED is to:
- Velocity (Correct answer)
- Distance
- Acceleration
- Direction
Correct answer: Velocity
Risk tolerance is the acceptable variation around a risk appetite threshold, just as speed is the scalar magnitude component of velocity.
Question 5: THREAT is to VULNERABILITY as LOCK PICK is to:
- Weak lock (Correct answer)
- Strong door
- Security guard
- Alarm system
Correct answer: Weak lock
A threat exploits a vulnerability to cause harm, just as a lock pick exploits a weak lock to gain unauthorized entry.
Question 6: QUALITATIVE RISK ANALYSIS is to SUBJECTIVE JUDGMENT as QUANTITATIVE RISK ANALYSIS is to:
- Numerical data (Correct answer)
- Expert opinion
- Color coding
- Verbal rating
Correct answer: Numerical data
Qualitative analysis relies on subjective judgment and descriptive ratings, while quantitative analysis relies on numerical data and statistical calculations.
Question 7: BUSINESS CONTINUITY PLAN is to DISASTER as SPARE TIRE is to:
- Flat tire (Correct answer)
- Car accident
- Traffic jam
- Road trip
Correct answer: Flat tire
A business continuity plan enables operations to continue after a disaster, just as a spare tire allows a vehicle to continue after a flat tire.
Analogy Risk Management & Mitigation 3
RISK APPETITE is to ORGANIZATION as SPEED LIMIT is to: