COA Risk Management & Quality Assurance 2 — Questions and Answers
Question 1: A risk register is primarily used to:
- Track employee performance reviews
- Document identified risks, their likelihood, and mitigation strategies (Correct answer)
- Record office supply inventory levels
- Schedule staff training sessions
Correct answer: Document identified risks, their likelihood, and mitigation strategies
A risk register is a formal document that records identified risks along with their probability, impact, and planned responses.
Question 2: Which quality assurance principle focuses on preventing defects rather than detecting them after the fact?
- Reactive quality control
- Proactive quality management (Correct answer)
- Post-production inspection
- Corrective action reporting
Correct answer: Proactive quality management
Proactive quality management builds quality into processes upfront rather than relying on inspection to catch errors afterward.
Question 3: When assessing risk, 'residual risk' refers to:
- The total risk before any controls are applied
- The risk that remains after mitigation measures have been implemented (Correct answer)
- Risk transferred to a third-party vendor
- Risk identified after an incident has occurred
Correct answer: The risk that remains after mitigation measures have been implemented
Residual risk is the level of risk still present after controls and mitigation strategies have been put in place.
Question 4: A SWOT analysis is a tool used in risk management to evaluate an organization's:
- Strengths, Weaknesses, Opportunities, and Threats (Correct answer)
- Systems, Workflow, Operations, and Technology
- Strategy, Workforce, Outputs, and Timelines
- Standards, Waste, Oversight, and Training
Correct answer: Strengths, Weaknesses, Opportunities, and Threats
SWOT analysis examines internal strengths and weaknesses alongside external opportunities and threats to inform strategic and risk decisions.
Question 5: Which document establishes the acceptable range of variation for a process or output in quality management?
- Risk appetite statement
- Control chart with specification limits (Correct answer)
- Business continuity plan
- Corrective action report
Correct answer: Control chart with specification limits
Control charts with specification limits define the boundaries within which a process must perform to meet quality standards.
Question 6: In the context of office operations, 'risk transfer' is best illustrated by:
- Canceling a high-risk project entirely
- Purchasing liability insurance for office equipment damage (Correct answer)
- Assigning a junior employee to handle a difficult client
- Documenting known risks in a spreadsheet
Correct answer: Purchasing liability insurance for office equipment damage
Risk transfer shifts the financial consequence of a risk to another party, such as an insurance provider.
Question 7: A root cause analysis (RCA) is conducted to:
- Predict future risks before they occur
- Identify the underlying cause of a problem so it can be permanently resolved (Correct answer)
- Rank risks by their likelihood and impact
- Create a checklist for routine office procedures
Correct answer: Identify the underlying cause of a problem so it can be permanently resolved
Root cause analysis investigates the fundamental reason a problem occurred so corrective action addresses the source, not just the symptom.
COA Risk Management & Quality Assurance 2
A risk register is primarily used to: