CIMA Enterprise Risk Management 2

Question 1

What type of risk arises from inadequate or failed internal processes, people, systems, or external events?

Accepted Answer

Operational risk

Answer

Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people, systems, or from external events.

Question 2

Which of the following is an example of a 'strategic risk'?

Accepted Answer

A new competitor entering the market and eroding market share

Answer

Strategic risk relates to threats to the organization's long-term objectives, such as new competition, technological disruption, or changes in market demand.

Question 3

What does 'business continuity planning' aim to achieve?

Accepted Answer

Ensuring an organization can continue critical operations following a disruptive event

Answer

Business continuity planning ensures that an organization can maintain or quickly resume critical business functions following a disruptive event such as a disaster or cyberattack.

Question 4

In the COSO ERM framework, which component involves setting objectives consistent with the organization's risk appetite?

Accepted Answer

Objective setting

Answer

In the COSO ERM framework, objective setting is the component where management establishes objectives aligned with the organization's risk appetite and mission.

Question 5

Which of the following describes a 'key risk indicator' (KRI)?

Accepted Answer

A forward-looking metric that provides early warning signals of increasing risk exposure

Answer

A key risk indicator is a forward-looking metric that signals changes in an organization's risk exposure, providing early warnings before risks materialize.

CIMA - Chartered Institute of Management Accountants Aptitude Test Practice Test

CIMA - Chartered Institute of Management Accountants Aptitude Test Practice Test

CIMA Enterprise Risk Management 2