COM Risk Assessment & Mitigation 2

Question 1

A risk matrix plots likelihood against which other dimension?

Accepted Answer

Impact severity

Answer

A risk matrix uses two axes — likelihood (probability) and impact severity — to prioritize risks visually.

Question 2

Which risk response strategy involves purchasing insurance or outsourcing a risky activity?

Accepted Answer

Risk transfer

Answer

Risk transfer shifts the financial or operational burden of a risk to a third party, such as through insurance or contracts.

Question 3

In a Failure Mode and Effects Analysis (FMEA), the Risk Priority Number (RPN) is calculated as:

Accepted Answer

Severity × Occurrence × Detection

Answer

RPN = Severity × Occurrence × Detection, giving a numerical score to prioritize failure modes for corrective action.

Question 4

What is the primary purpose of a risk register in operations management?

Accepted Answer

To document identified risks, their likelihood, impact, and response plans

Answer

A risk register is a living document that captures identified risks along with their probability, impact, owners, and mitigation strategies.

Question 5

Which approach to risk quantification uses probability distributions and repeated simulations to model uncertainty?

Accepted Answer

Monte Carlo simulation

Answer

Monte Carlo simulation runs thousands of scenarios with random variable inputs to generate a probability distribution of outcomes.

(COM) Certified Operations Manager Practice Test