CSET Risk Assessment & Management 3 — Questions and Answers
Question 1: A CSET candidate is reviewing a scenario where a school's emergency response plan has not been tested in two years. What type of risk does this situation represent?
- Financial risk
- Operational risk (Correct answer)
- Strategic risk
- Reputational risk
Correct answer: Operational risk
Operational risk arises from failures in internal processes, systems, or procedures, such as an untested emergency response plan.
Question 2: Which qualitative risk analysis tool plots risks on a grid based on their probability of occurrence and potential impact?
- Risk register
- Probability-Impact matrix (Correct answer)
- Monte Carlo simulation
- Fault tree analysis
Correct answer: Probability-Impact matrix
A Probability-Impact (P-I) matrix maps risks visually by their likelihood and consequence to aid prioritization.
Question 3: A school administrator notices a pattern of student injuries during a specific physical education activity. Addressing this through updated safety protocols is an example of which risk management process?
- Risk identification
- Risk monitoring and control (Correct answer)
- Residual risk acceptance
- Qualitative risk analysis
Correct answer: Risk monitoring and control
Risk monitoring and control involves tracking identified risks and implementing corrective actions when new risk patterns emerge.
Question 4: What is 'residual risk' in risk management?
- Risk that has been completely eliminated
- Risk that remains after mitigation measures are applied (Correct answer)
- Risk identified after project completion
- The total aggregate of all identified risks
Correct answer: Risk that remains after mitigation measures are applied
Residual risk is the level of risk that remains after controls and mitigation strategies have been implemented.
Question 5: In a school's technology deployment project, which risk identification technique involves team members independently submitting risk ideas before group discussion to avoid groupthink?
- Brainstorming
- Nominal Group Technique
- Delphi technique (Correct answer)
- SWOT analysis
Correct answer: Delphi technique
The Delphi technique uses anonymous, iterative rounds of expert input to build consensus while minimizing social influence and groupthink.
Question 6: When calculating risk exposure, which formula correctly represents the relationship between threat likelihood and asset value?
- Risk = Asset Value + Threat Likelihood
- Risk = Asset Value × Threat Likelihood × Vulnerability (Correct answer)
- Risk = Threat Likelihood / Asset Value
- Risk = Asset Value - Mitigation Cost
Correct answer: Risk = Asset Value × Threat Likelihood × Vulnerability
Risk exposure is commonly calculated as Asset Value × Threat Likelihood × Vulnerability level to determine potential loss.
Question 7: A risk manager recommends adding contingency reserves to a project budget. What primary purpose do contingency reserves serve?
- To fund scope changes requested by stakeholders
- To cover known unknown risks that have been identified (Correct answer)
- To compensate for poor initial project estimates
- To pay for additional staff when workload increases
Correct answer: To cover known unknown risks that have been identified
Contingency reserves are budget allocations set aside specifically to address identified risks that may materialize during a project.
CSET Risk Assessment & Management 3
A CSET candidate is reviewing a scenario where a school's emergency response plan has not been tested in two years.
What type of risk does this situation represent?