CSM Risk Assessment & Mitigation 3

Question 1

When calculating a risk's Expected Monetary Value (EMV), which formula is used?

Accepted Answer

EMV = Impact × Probability

Answer

Expected Monetary Value is calculated by multiplying the monetary impact of a risk by its probability of occurrence.

Question 2

A software manager purchases cybersecurity insurance to cover losses from a potential data breach. This is an example of:

Accepted Answer

Risk transference

Answer

Purchasing insurance transfers the financial consequences of a risk to a third party (the insurer).

Question 3

Which of the following best describes a 'residual risk'?

Accepted Answer

The remaining risk after mitigation actions have been applied

Answer

Residual risk is the level of risk that remains after mitigation strategies have been implemented.

Question 4

A software manager identifies a risk but decides to watch it closely over the next two weeks before taking action. This approach is called:

Accepted Answer

Risk monitoring (watchlist)

Answer

Placing a risk on a watchlist means actively monitoring it without immediately allocating resources, pending further information.

Question 5

In a risk register, which field records the planned actions to reduce a risk's probability or impact?

Accepted Answer

Mitigation plan

Answer

The mitigation plan field documents the specific actions planned to reduce the probability or impact of the identified risk.

(CSM) Certified Software Manager Practice Test