NES Risk Assessment & Management 3

Question 1

When conducting a qualitative risk assessment, which approach is most commonly used?

Accepted Answer

Rating risks using descriptive scales such as high, medium, and low

Answer

Qualitative risk assessment uses descriptive ratings and expert judgment rather than precise numerical calculations to rank risks.

Question 2

A 'risk owner' in an organization is best described as:

Accepted Answer

The individual accountable for monitoring and managing a specific risk

Answer

A risk owner is assigned accountability for overseeing and responding to a particular risk within an organization.

Question 3

Which of the following best describes 'inherent risk'?

Accepted Answer

Risk level before any controls or mitigations are applied

Answer

Inherent risk is the raw level of risk present in a situation before any preventive or mitigating controls are implemented.

Question 4

A school district experiences repeated small losses from minor student accidents. The BEST risk management response is likely:

Accepted Answer

Implement safety training and physical controls to reduce frequency

Answer

Repeated minor losses indicate a systematic issue best addressed by mitigation controls that reduce the frequency and severity of incidents.

Question 5

In enterprise risk management (ERM), 'risk appetite' refers to:

Accepted Answer

The amount of risk an organization is willing to accept in pursuit of its objectives

Answer

Risk appetite defines the level and type of risk an organization is prepared to accept while striving to achieve its strategic goals.

NES Test Practice Test