Business Case Writing Risk Assessment and Mitigation 1

Question 1

In a business case risk register, risks are typically evaluated based on:

Accepted Answer

Probability of occurrence and potential impact

Answer

A risk register scores each risk by multiplying (or rating) its probability and impact to prioritize mitigation efforts.

Question 2

Which risk response strategy involves shifting the financial impact of a risk to a third party?

Accepted Answer

Transfer

Answer

Risk transfer moves the financial consequences of a risk to another party, such as through insurance or fixed-price contracts.

Question 3

A 'residual risk' in a business case is best described as:

Accepted Answer

The remaining risk after mitigation measures have been applied

Answer

Residual risk is what remains after the planned risk response has been implemented and accepted by the organization.

Question 4

Which qualitative risk analysis tool plots risks on a grid by likelihood and impact?

Accepted Answer

Probability-Impact Matrix

Answer

A Probability-Impact Matrix visually maps risks based on how likely they are and how severe their consequences would be.

Question 5

In US business cases for regulated industries, which risk category requires specific regulatory compliance documentation?

Accepted Answer

Compliance risk

Answer

Compliance risk involves the potential for legal penalties or sanctions due to failure to adhere to laws, regulations, or internal policies.

Business Case Writing Practice Test