Strategic Planning & Crisis Management Flashcards

During a strategic risk assessment, a CRO discovers that a key competitor has launched a disruptive technology. Which response best reflects integrated strategic risk management?

Answer: Incorporate the competitive threat into the risk-adjusted strategic plan and escalate to the board

Integrated strategic risk management requires embedding emerging threats into the strategic plan and ensuring board-level visibility for appropriate response.

A Chief Risk Officer is developing a crisis communication plan. Which element is most critical to include to maintain stakeholder confidence during a major operational crisis?

Answer: Pre-approved message templates with designated spokespersons and escalation triggers

Pre-approved templates with clear spokespersons and escalation triggers ensure consistent, timely communication that preserves stakeholder trust during crises.

Which framework is most widely used to align enterprise risk management with an organization's overall strategic objectives?

Answer: COSO ERM 2017

COSO ERM 2017 explicitly integrates risk management with strategy setting and performance management at the enterprise level.

A company's crisis management team is conducting a post-incident review after a supply chain disruption. What is the PRIMARY purpose of this review?

Answer: Identify lessons learned to improve future crisis response plans

Post-incident reviews are fundamentally about capturing lessons learned to strengthen crisis preparedness and response for future events.

In strategic risk planning, what does 'risk appetite articulation' primarily help an organization accomplish?

Answer: Define the boundaries within which management may pursue strategic objectives

Risk appetite articulation sets the boundaries of acceptable risk-taking, guiding management decisions when pursuing strategic goals.

A CRO must present a scenario analysis to the board covering a potential economic recession. Which approach best demonstrates the value of scenario planning in strategic risk management?

Answer: Model multiple plausible scenarios with associated strategic responses and triggers

Effective scenario analysis presents multiple plausible futures with pre-defined strategic responses, enabling proactive rather than reactive decision-making.

Which concept describes the maximum tolerable downtime for a critical business process before the organization suffers unacceptable consequences during a crisis?

Answer: Maximum Tolerable Period of Disruption (MTPD)

The Maximum Tolerable Period of Disruption (MTPD) defines the longest duration a critical process can be unavailable before unacceptable harm results.