OM Risk Assessment & Mitigation 5

Question 1

A risk audit differs from a risk review in that a risk audit:

Accepted Answer

Examines the effectiveness of risk responses and the risk management process itself

Answer

A risk audit evaluates whether the risk management process and responses are being executed correctly and effectively, going beyond just updating the risk register.

Question 2

Which of the following is the correct sequence of the risk management process?

Accepted Answer

Plan → Identify → Analyze → Respond → Monitor

Answer

The standard risk management sequence is: Plan risk management, Identify risks, Analyze risks (qualitative then quantitative), Plan responses, and Monitor/control.

Question 3

A 'risk trigger' in project management refers to:

Accepted Answer

A warning sign or condition that indicates a risk event is about to occur

Answer

A risk trigger (also called a risk symptom or warning sign) is an observable indicator that signals a risk event may be imminent, allowing early response.

Question 4

In a bow-tie risk analysis diagram, the left side of the bow-tie represents:

Accepted Answer

Threats and preventive barriers leading up to the hazard event

Answer

The left side of a bow-tie diagram maps the threat sources and preventive controls that could stop the central hazard event from occurring.

Question 5

An organization implements a policy requiring dual approval for all financial transactions over $50,000 to reduce fraud risk. This is an example of which type of control?

Accepted Answer

Preventive control

Answer

A preventive control is designed to stop a risk event (like fraud) from occurring in the first place, which dual-approval processes accomplish.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Risk Assessment & Mitigation 5