CPS Risk Management & Mitigation 3

Question 1

Which of the following best describes 'inherent risk' in process management?

Accepted Answer

The gross risk level before any controls or mitigations are in place

Answer

Inherent risk is the raw level of risk present in a process or activity before any controls, safeguards, or mitigation actions are applied.

Question 2

When conducting a Failure Mode and Effects Analysis (FMEA), what does the 'detection' rating measure?

Accepted Answer

The ability of current controls to detect the failure before it reaches the customer

Answer

In FMEA, the detection rating evaluates how effectively existing controls can identify a failure mode before it escapes the process and affects the customer.

Question 3

A company implements redundant systems to ensure a backup activates if the primary process fails. This risk strategy is best described as:

Accepted Answer

Risk mitigation through redundancy

Answer

Adding redundant systems reduces the impact of a failure by providing a backup, which is a form of risk mitigation focused on reducing impact severity.

Question 4

What is the primary objective of a 'business continuity plan' (BCP) in process risk management?

Accepted Answer

To ensure critical processes can continue or recover quickly after a disruptive event

Answer

A BCP defines strategies and procedures to maintain or rapidly restore critical business functions when disruptions such as disasters or system failures occur.

Question 5

Which risk escalation trigger is most appropriate for a process manager to use?

Accepted Answer

Escalate only when a risk exceeds predefined thresholds of impact or probability

Answer

Effective escalation protocols define clear thresholds so that risks exceeding acceptable limits are raised to higher management for decision-making.

(CPS) Certified Process Specialist Practice Test

(CPS) Certified Process Specialist Practice Test

CPS Risk Management & Mitigation 3