Risk Management & Quality Assurance Flashcards

Which risk response strategy involves choosing not to pursue an activity because the risk is too high?

Answer: Risk avoidance

Risk avoidance means eliminating the risk entirely by deciding not to engage in the activity that creates it.

Benchmarking in quality assurance involves:

Answer: Comparing organizational processes and performance against best-in-class standards

Benchmarking measures an organization's processes against industry leaders or best practices to identify improvement opportunities.

An office administrator notices that the same data entry error occurs repeatedly. The BEST first step is to:

Answer: Conduct a root cause analysis to find why the error keeps happening

A root cause analysis will identify the systemic reason behind repeated errors so the process can be corrected at its source.

The ISO 9001 standard is associated with:

Answer: Quality management systems

ISO 9001 specifies requirements for a quality management system that helps organizations consistently meet customer and regulatory requirements.

Which risk assessment matrix element describes how severely a risk event would impact the organization if it occurred?

Answer: Impact

Impact measures the severity of consequences — such as financial loss, reputational damage, or operational disruption — if the risk materializes.

A quality audit in an office setting typically involves:

Answer: Systematically examining processes to verify they meet established standards

A quality audit is a structured review that checks whether processes, procedures, and outputs conform to defined quality standards.

Which approach to risk management involves accepting a risk without taking specific action, typically because the cost of mitigation exceeds the potential loss?

Answer: Risk acceptance

Risk acceptance is a conscious decision to acknowledge a risk and absorb any potential impact without implementing controls.