PSP Risk Management 2

Question 1

In the context of physical security risk assessment, what does the formula R = T x V x C represent?

Accepted Answer

Risk equals threat multiplied by vulnerability multiplied by consequence

Answer

The standard risk formula calculates risk as the product of threat likelihood, vulnerability level, and potential consequence or impact.

Question 2

What is the key difference between qualitative and quantitative risk assessment methods?

Accepted Answer

Qualitative uses descriptive scales while quantitative assigns numerical values and calculates expected losses

Answer

Qualitative assessment uses categories like high/medium/low while quantitative assigns numerical probabilities and dollar values.

Question 3

When conducting a risk assessment for a new facility, what should be evaluated FIRST?

Accepted Answer

The threat environment including crime data, natural hazards, and geopolitical factors for the location

Answer

Understanding the threat environment establishes the context for all subsequent vulnerability and countermeasure assessments.

Question 4

What is the purpose of a Business Impact Analysis (BIA) in security risk management?

Accepted Answer

To identify critical business functions and determine the impact of their disruption on the organization

Answer

A BIA identifies which business functions are most critical and quantifies the impact of their disruption to prioritize protection efforts.

Question 5

Which risk treatment strategy involves transferring the financial impact of a risk to another party?

Accepted Answer

Risk transfer through insurance or contractual agreements

Answer

Risk transfer shifts the financial burden of a loss to an insurer or other party through insurance policies or contractual indemnification.

PSP - Physical Security Professional Practice Test