GMAC Risk Management

Question 1

What is the primary objective of risk management in professional practice?

Accepted Answer

Creating sustainable value for all stakeholders

Answer

Risk Management aims to create sustainable value for all stakeholders including customers, employees, shareholders, and the community.

Question 2

Which leadership approach best supports risk management?

Accepted Answer

Collaborative leadership that empowers team members and fosters innovation

Answer

Collaborative leadership that empowers team members drives engagement, innovation, and better outcomes.

Question 3

How should performance be measured in risk management?

Accepted Answer

Using balanced scorecards with multiple key performance indicators

Answer

Balanced scorecards with multiple KPIs provide a comprehensive view of performance across financial, customer, process, and learning dimensions.

Question 4

What risk management principle applies to risk management?

Accepted Answer

Proactively identify, assess, and mitigate risks through a structured framework

Answer

Proactive risk management through structured identification, assessment, and mitigation is essential for business continuity.

Question 5

How does ethical decision-making apply to risk management?

Accepted Answer

All decisions should consider legal compliance, stakeholder impact, and organizational values

Answer

Ethical decision-making requires considering legal compliance, stakeholder impact, and alignment with organizational values.

GMAC - Graduate Management Admission Council Practice Test