Risk Assessment & Management Flashcards
7 cards from real Emotional Intelligence practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment & Management flashcards as text
In risk assessment, 'optimism bias' refers to:
Answer: The tendency to overestimate the benefits of a decision while underestimating its risks
Optimism bias is a cognitive distortion where people believe negative events are less likely to affect them than others, inflating risk exposure.
Which scenario best illustrates emotional intelligence reducing financial risk?
Answer: A negotiator reads emotional cues to detect when a counterpart is bluffing, avoiding a bad deal
Reading emotional cues during negotiation is an EI skill that prevents agreement to unfavorable terms, reducing financial risk.
When a risk management plan fails to account for how employees will emotionally react to a crisis, the plan is likely to:
Answer: Underestimate the time and resources needed to restore normal functioning
Crisis plans that ignore emotional responses often face slower recovery because fear, confusion, and grief impede execution.
A team is about to launch a product but members privately have concerns they haven't voiced. This dynamic is called:
Answer: Groupthink, a social risk driven by emotional conformity pressure
Groupthink is a social risk where desire for harmony suppresses dissenting views, leading to poor decisions.
Which EI skill helps a risk manager avoid 'analysis paralysis' when facing uncertain decisions?
Answer: Emotional self-awareness to distinguish productive caution from anxiety-driven stalling
Self-awareness allows a manager to recognize when hesitation stems from anxiety rather than legitimate data gaps, enabling timely decisions.
How does psychological safety function as a risk management tool?
Answer: It creates conditions where people report problems early, enabling earlier risk intervention
When people feel safe to speak up, risks are surfaced earlier and can be addressed before they escalate.
A board member frequently dismisses concerns raised by junior staff during risk reviews. The primary EI failure here is:
Answer: Insufficient empathy and social awareness, creating blind spots in risk intelligence
Dismissing junior staff suppresses critical information sources, limiting the quality of risk assessments made by leadership.