Risk Assessment & Mitigation Flashcards
6 cards from real FHA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Risk Assessment & Mitigation flashcards as text
What is the first step in the risk management process?
Answer: Identify potential risks through systematic analysis
Systematic risk identification is the foundational first step, as risks cannot be managed or mitigated until they are identified and understood.
How should risks be prioritized?
Answer: Based on probability of occurrence and potential impact
Prioritizing by probability and impact ensures resources are allocated to the risks most likely to cause significant harm, maximizing risk management effectiveness.
What is risk mitigation?
Answer: Taking actions to reduce the likelihood or impact of identified risks
Risk mitigation involves specific actions to reduce either the likelihood of risk occurrence or its potential impact, bringing residual risk to acceptable levels.
When should a risk register be updated?
Answer: Continuously as new risks emerge and existing risks change
Continuous updates to the risk register ensure it reflects the current risk landscape, enabling timely responses to new and changing risks.
What is residual risk?
Answer: The risk remaining after mitigation measures have been applied
Residual risk is what remains after mitigation measures are applied, and it must be accepted, further reduced, or transferred based on organizational risk tolerance.
How does risk appetite influence management decisions?
Answer: It defines the level of risk an organization is willing to accept in pursuit of objectives
Risk appetite defines acceptable risk levels in pursuit of objectives, guiding decisions about which risks to accept, mitigate, transfer, or avoid.