BEC Strategic Planning and Risk Management

Question 1

A SWOT analysis evaluates a company's:

Accepted Answer

Strengths, Weaknesses, Opportunities, and Threats

Answer

Sales, Workflow, Operations, and Talent

Answer

Strategy, Workforce, Objectives, and Targets

Answer

Systems, Workflows, Outputs, and Timelines

Question 2

Porter's Five Forces model analyzes competitive intensity by examining:

Accepted Answer

Rivalry, new entrant threat, substitutes, buyer power, and supplier power

Answer

Market share, revenue growth, profit margin, brand strength, and innovation rate

Answer

Political, economic, social, technological, legal, and environmental factors

Answer

Customer segments, value propositions, channels, revenue streams, and cost structure

Question 3

Enterprise risk management (ERM) is best described as:

Accepted Answer

A comprehensive framework for identifying, assessing, and managing risks across the entire organization

Answer

A system for managing only financial and accounting risks

Answer

An insurance strategy to transfer all business risks externally

Answer

A compliance program designed solely to meet regulatory requirements

Question 4

A company pursuing a cost leadership strategy aims to:

Accepted Answer

Achieve the lowest cost structure in its industry to offer competitive prices and earn above-average profits

Answer

Offer premium products at the highest prices in the market

Answer

Focus on a narrow market segment with specialized offerings

Answer

Grow through acquisitions of competitors and related businesses

Question 5

A key performance indicator (KPI) should be:

Accepted Answer

Specific, measurable, and directly tied to strategic objectives

Answer

Set at levels that are always easily achievable to motivate employees

Answer

Focused exclusively on financial metrics such as revenue and profit

Answer

Reviewed annually at the end of the fiscal year only

Question 6

The risk response strategy of 'risk avoidance' involves:

Accepted Answer

Eliminating the risk by not undertaking the activity that creates it

Answer

Purchasing insurance to transfer financial consequences to a third party

Answer

Accepting the risk and monitoring it without taking proactive action

Answer

Implementing controls to reduce the probability or impact of the risk