Risk Assessment & Mitigation Flashcards
7 cards from real RIMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment & Mitigation flashcards as text
Which risk assessment technique assigns numerical probabilities to potential outcomes and calculates an expected value for each risk?
Answer: Quantitative risk analysis
Quantitative risk analysis uses numerical data and probability estimates to calculate expected monetary value (EMV) or other numerical risk metrics.
A company's risk appetite statement specifies it will not accept any single risk event with a potential loss exceeding $5 million. This is best described as a:
Answer: Risk tolerance threshold
A risk tolerance threshold defines the specific boundary within which the organization is willing to operate, translating the broader risk appetite into a measurable limit.
In the context of RIMS risk maturity, an organization that has documented risk processes but applies them inconsistently is operating at which maturity level?
Answer: Repeatable
The 'Repeatable' maturity level indicates processes are documented and defined, but application may still be inconsistent across the organization.
Which of the following BEST describes a 'residual risk'?
Answer: Risk remaining after controls and treatments have been applied
Residual risk is the level of risk that remains after risk treatment measures, controls, and mitigations have been implemented.
Monte Carlo simulation is used in risk management primarily to:
Answer: Model the range of possible outcomes by running thousands of random scenarios
Monte Carlo simulation runs thousands of randomized iterations to produce a probability distribution of outcomes, helping quantify uncertainty in complex risk models.
A hospital implements hand-washing protocols to reduce infection rates. This is an example of which risk mitigation strategy?
Answer: Risk reduction (control)
Implementing a control measure (hand-washing protocol) to reduce the likelihood or impact of an identified risk is a risk reduction strategy.
Which tool maps cause-and-effect relationships between risk factors and is shaped like a fish skeleton?
Answer: Ishikawa (fishbone) diagram
The Ishikawa or fishbone diagram visually maps cause-and-effect relationships to identify the root causes contributing to a specific risk or problem.