Asset Management Asset Risk Management

Question 1

Which risk management framework is widely used in the US for identifying, assessing, and responding to organizational risks including asset-related risks?

Accepted Answer

COSO ERM Framework

Answer

ISO 55000

Answer

Six Sigma DMAIC

Answer

PMI PMBOK

Question 2

What is 'asset risk' primarily concerned with in an asset management context?

Accepted Answer

The probability and consequence of an asset failing to deliver expected value

Answer

The chance that an asset will appreciate

Answer

Employee turnover near asset sites

Answer

Vendor contract renegotiation

Question 3

Which technique plots risks on a two-dimensional grid based on likelihood and impact to prioritize response actions?

Accepted Answer

Risk Heat Map (Risk Matrix)

Answer

SWOT Analysis

Answer

Monte Carlo Simulation

Answer

Fault Tree Analysis

Question 4

In asset risk management, 'risk appetite' refers to:

Accepted Answer

Amount of risk an organization is willing to accept in pursuit of objectives

Answer

Budget allocated to risk mitigation

Answer

Number of assets in the portfolio

Answer

Insurance deductible threshold

Question 5

Which type of asset risk involves the potential for financial loss due to changes in market prices, interest rates, or currency values?

Accepted Answer

Market Risk

Answer

Operational Risk

Answer

Compliance Risk

Answer

Reputational Risk

Question 6

A risk response strategy that transfers the financial impact of an asset risk to a third party is best described as:

Accepted Answer

Risk transfer

Answer

Risk avoidance

Answer

Risk reduction

Answer

Risk acceptance