Risk Identification & Evaluation 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 Identification & Evaluation flashcards as text
Which technique involves systematically examining each component of a system to identify how it could fail and the impact of that failure?
Answer: Failure mode and effects analysis (FMEA)
FMEA systematically examines each component to identify potential failure modes and their effects on the overall system.
A company discovers it relies on a single supplier for 80% of its critical components. This situation is best described as:
Answer: Concentration risk
Concentration risk arises when excessive exposure is tied to a single entity, geography, or source, creating vulnerability if that source fails.
In risk evaluation, what does the term 'risk velocity' refer to?
Answer: The speed at which a risk can impact the organization after it materializes
Risk velocity measures how quickly a risk event can affect an organization once it is triggered, influencing response time requirements.
Which qualitative risk assessment tool uses structured group sessions with expert facilitators to identify risks through brainstorming?
Answer: Risk workshop
Risk workshops bring together subject matter experts in facilitated sessions to collectively identify, discuss, and prioritize risks.
The primary purpose of a risk register is to:
Answer: Document, track, and manage identified risks and their attributes
A risk register serves as the central repository for documenting identified risks, their assessments, owners, and treatment plans.
When assessing inherent risk versus residual risk, inherent risk is defined as:
Answer: The raw risk exposure that exists before any controls are implemented
Inherent risk is the level of risk present in a process or activity before any risk controls or mitigation actions are considered.
A pharmaceutical company assesses the probability that a drug trial will fail due to unforeseen side effects. This is an example of evaluating:
Answer: Strategic risk
Strategic risks arise from decisions about business direction, innovation, and investments where outcomes are uncertain and tied to organizational objectives.