FREE CRM Risk Management & Assessment Questions and Answers

Question 1

What is the first step in the risk management process?

Accepted Answer

Identify potential risks.

Answer

Evaluate the risks.

Answer

Implement control measures.

Answer

Monitor and review controls.

Question 2

Which of the following is a qualitative risk assessment method?

Accepted Answer

Risk matrix scoring

Answer

Monte Carlo simulation

Answer

Statistical regression

Answer

Loss expectancy calculation

Question 3

In risk terminology, what does 'inherent risk' refer to?

Accepted Answer

Risk before controls are in place

Answer

Risk left after implementing controls

Answer

The most critical identified risk

Answer

Risks accepted by management

Question 4

Which strategy is used when an organization decides not to engage in a high-risk activity?

Accepted Answer

Risk avoidance

Answer

Risk reduction

Answer

Risk transfer

Answer

Risk acceptance

Question 5

What is the primary benefit of conducting a risk assessment?

Accepted Answer

To identify and prioritize risks

Answer

To eliminate all risks

Answer

To comply with all regulations

Answer

To reduce operational costs

Question 6

Which of the following is a risk transfer technique?

Accepted Answer

Insurance policy

Answer

Risk acceptance

Answer

Control implementation

Answer

Hazard elimination

Question 7

Residual risk is defined as:

Accepted Answer

Risk remaining after controls

Answer

Risk transferred to another entity

Answer

The original unmitigated risk

Answer

Risk accepted by stakeholders

Question 8

Which document outlines an organization's approach to managing risk?

Accepted Answer

Risk management policy

Answer

Code of ethics

Answer

Risk register

Answer

Operational handbook

Question 9

Why is ongoing risk monitoring important?

Accepted Answer

To ensure risk controls stay effective

Answer

To delay mitigation strategies

Answer

To reduce reporting requirements

Answer

To increase inherent risks