FREE CFO Risk Management Questions and Answers

Question 1

What is risk management?

Accepted Answer

Managing and reducing business threats

Answer

Investing in high-risk stocks

Answer

Predicting market prices

Answer

Hiring new staff

Question 2

Which type of risk comes from external market events?

Accepted Answer

Market risk

Answer

Operational risk

Answer

Credit risk

Answer

Compliance risk

Question 3

What tool is used to evaluate likelihood and impact of risks?

Accepted Answer

Risk matrix

Answer

Balance sheet

Answer

P&L statement

Answer

Job description

Question 4

Which department typically leads compliance risk management?

Accepted Answer

Compliance

Answer

Marketing

Answer

Production

Answer

Customer service

Question 5

What is hedging used for?

Accepted Answer

Offset financial risk

Answer

Increase spending

Answer

Minimize operational duties

Answer

Expand office space

Question 6

What is an internal control?

Accepted Answer

Safeguard process for financial accuracy

Answer

Marketing campaign

Answer

Hiring freeze

Answer

Pay raise

Question 7

What is the purpose of a business continuity plan?

Accepted Answer

Maintain operations during disruptions

Answer

Reorganize teams

Answer

Avoid audits

Answer

Increase sales

Question 8

What is risk appetite?

Accepted Answer

Acceptable risk level

Answer

Amount of snacks ordered

Answer

Risk rejection

Answer

Probability of fraud

Question 9

Which risk is associated with internal system failures?

Accepted Answer

Operational risk

Answer

Liquidity risk

Answer

Market risk

Answer

Strategic risk