Risk Management & Assessment Flashcards

In a qualitative risk matrix, overall risk exposure is typically determined by combining which two factors?

Answer: Likelihood and impact

Qualitative risk ratings multiply or combine the probability of occurrence with the severity of impact.

A training manager keeps a document listing each identified risk for a new program rollout along with its owner, rating, and planned response. What is this document?

Answer: Risk register

The risk register is the central record of identified risks, their analysis, owners, and responses.

Contracting an external vendor with liability and indemnity clauses to deliver hazardous-materials training is an example of which risk response?

Answer: Transfer

Shifting the financial consequence and ownership of a risk to a third party is risk transfer.

What is residual risk?

Answer: Risk that remains after planned responses have been implemented

Residual risk is what is left over once risk responses are in place.

Tracking completion of mandatory compliance training MOST directly reduces which organizational risk?

Answer: Regulatory penalties and legal liability

Documented completion of required training demonstrates compliance and lowers exposure to fines and lawsuits.

Who should normally be assigned as the owner of a specific training program risk?

Answer: The person best positioned to monitor it and carry out the response

Risk owners should have the authority and proximity to track the risk and execute its response.

The amount and type of risk an organization is willing to pursue or retain in pursuit of its objectives is called its:

Answer: Risk appetite

Risk appetite expresses the organization's overall willingness to take on risk to achieve goals.