Full Practice Test Flashcards

A predetermined event that signals a risk is about to occur or has occurred is known as a risk:

Answer: Trigger

A risk trigger is a warning sign or symptom indicating that a risk is imminent or has materialized.

Which tool organizes potential sources of risk in a hierarchical structure by category?

Answer: Risk breakdown structure (RBS)

The risk breakdown structure (RBS) hierarchically organizes potential risk sources by category.

A stakeholder's measurement of acceptable variation around an objective is best described as a risk:

Answer: Threshold

A risk threshold is the measurable level of exposure variation that is acceptable to a stakeholder.

Which risk identification technique gathers expert input anonymously over several rounds to reach consensus and reduce bias?

Answer: Delphi technique

The Delphi technique uses anonymous, iterative expert questionnaires to build consensus while minimizing bias.

A general willingness of an organization to take on risk in pursuit of its objectives is called risk:

Answer: Appetite

Risk appetite is the broad, qualitative degree of uncertainty an organization is willing to accept in anticipation of reward.

When a risk response strategy is to purchase insurance for a threat, which strategy is being applied?

Answer: Transfer

Buying insurance shifts the impact and ownership of a threat to a third party, which is transferring the risk.

A risk that remains after planned responses have been implemented is called:

Answer: Residual risk

Residual risk is the exposure that remains after risk responses have been carried out.