NES Risk Assessment & Management 2

Question 1

A risk matrix is primarily used to:

Accepted Answer

Prioritize risks by likelihood and impact

Answer

A risk matrix plots risks by their probability and potential impact to help prioritize which risks require immediate attention.

Question 2

Which risk response strategy involves transferring the financial consequences of a risk to a third party?

Accepted Answer

Risk transfer

Answer

Risk transfer shifts the financial burden of a risk to another party, such as through insurance or contractual agreements.

Question 3

A school identifies that a new construction project next door increases noise levels during standardized testing. This is best classified as:

Accepted Answer

An environmental risk

Answer

Environmental risks arise from external physical conditions such as noise, weather, or construction that affect operations.

Question 4

In risk management, 'residual risk' refers to:

Accepted Answer

Risk remaining after controls are applied

Answer

Residual risk is the level of risk that remains after mitigation controls and safeguards have been implemented.

Question 5

Which step in the risk management process involves gathering data and estimating the probability and severity of potential events?

Accepted Answer

Risk analysis

Answer

Risk analysis quantifies or qualifies risks by evaluating their likelihood and potential impact after identification.

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