Presentations Risk Assessment & Management 2

Question 1

A project manager is presenting a risk register to executives. Which element is MOST critical to include for each identified risk?

Accepted Answer

Risk owner and mitigation plan

Answer

A risk register must include a risk owner accountable for monitoring the risk and a mitigation plan outlining the response strategy.

Question 2

During a presentation on supply chain risks, you display a heat map. What do the axes of a standard risk heat map represent?

Accepted Answer

Probability and impact

Answer

A risk heat map plots probability (likelihood of occurrence) on one axis and impact (severity of consequences) on the other.

Question 3

When presenting risk tolerance levels to a board, which term describes the maximum risk an organization is willing to accept in pursuit of its objectives?

Accepted Answer

Risk appetite

Answer

Risk appetite is the amount and type of risk an organization is willing to accept in pursuit of its strategic objectives.

Question 4

A presenter is explaining Monte Carlo simulation to a non-technical audience. What is the PRIMARY purpose of this technique in risk management?

Accepted Answer

To model probability distributions of outcomes under uncertainty

Answer

Monte Carlo simulation runs thousands of scenarios to produce a probability distribution of possible outcomes, quantifying uncertainty.

Question 5

In a risk presentation, 'residual risk' refers to which of the following?

Accepted Answer

Risk remaining after controls are applied

Answer

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

Presentations Practice Test

Presentations Practice Test

Presentations Risk Assessment & Management 2