OM Risk Assessment & Mitigation 2

Question 1

Which risk assessment technique uses a numerical scale to rate both the likelihood and impact of a risk, then multiplies the two values to produce a risk score?

Accepted Answer

Probability-impact matrix

Answer

A probability-impact matrix rates likelihood and impact on numerical scales and multiplies them to calculate a composite risk score for prioritization.

Question 2

An organization's risk appetite is best described as:

Accepted Answer

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

Answer

Risk appetite defines the level of risk an organization is willing to tolerate while pursuing its strategic goals.

Question 3

What is 'residual risk' in risk management?

Accepted Answer

Risk that remains after controls and mitigation measures have been applied

Answer

Residual risk is the risk exposure that remains after all planned risk responses and controls have been implemented.

Question 4

A project manager identifies a risk that could delay the project by two weeks but decides not to implement any response because the cost of mitigation exceeds the expected impact. This strategy is called:

Accepted Answer

Risk acceptance

Answer

Risk acceptance is chosen when the cost or effort to mitigate a risk outweighs its potential impact, so no action is taken.

Question 5

The Delphi technique is used in risk identification primarily to:

Accepted Answer

Reach consensus among experts through anonymous iterative questionnaires

Answer

The Delphi technique gathers expert input anonymously across multiple rounds to build consensus on risks without social pressure or groupthink.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Risk Assessment & Mitigation 2