CS Risk Management & Mitigation 2

Question 1

A company's risk register shows a cyber breach with high likelihood and high impact. Which mitigation action best addresses this scenario?

Accepted Answer

Transfer risk through cyber liability insurance and implement MFA

Answer

Transferring high-likelihood, high-impact risks via insurance while adding controls like MFA reflects a combined mitigation and transfer strategy.

Question 2

In a Monte Carlo simulation for project risk, what does the output distribution primarily represent?

Accepted Answer

A range of possible outcomes with associated probabilities

Answer

Monte Carlo simulations model uncertainty by running thousands of iterations to produce a probability distribution of outcomes.

Question 3

Which risk response strategy is most appropriate when the cost of mitigating a risk exceeds its potential impact?

Accepted Answer

Accept

Answer

Risk acceptance is appropriate when mitigation costs outweigh the financial or strategic impact of the risk materializing.

Question 4

A strategist is evaluating residual risk after controls are applied. Residual risk is best defined as:

Accepted Answer

Risk remaining after mitigation controls are in place

Answer

Residual risk is the level of risk that persists after all planned risk responses and controls have been implemented.

Question 5

Which framework is most commonly used for enterprise risk management (ERM) in US organizations?

Accepted Answer

COSO ERM Framework

Answer

The COSO ERM Framework is the dominant standard for enterprise risk management, widely adopted by US organizations.

(CS) Certified Strategist Practice Test