RIMS Risk Identification & Evaluation 2

Question 1

Which technique involves systematically examining each component of a system to identify how it could fail and the impact of that failure?

Accepted Answer

Failure mode and effects analysis (FMEA)

Answer

FMEA systematically examines each component to identify potential failure modes and their effects on the overall system.

Question 2

A company discovers it relies on a single supplier for 80% of its critical components. This situation is best described as:

Accepted Answer

Concentration risk

Answer

Concentration risk arises when excessive exposure is tied to a single entity, geography, or source, creating vulnerability if that source fails.

Question 3

In risk evaluation, what does the term 'risk velocity' refer to?

Accepted Answer

The speed at which a risk can impact the organization after it materializes

Answer

Risk velocity measures how quickly a risk event can affect an organization once it is triggered, influencing response time requirements.

Question 4

Which qualitative risk assessment tool uses structured group sessions with expert facilitators to identify risks through brainstorming?

Accepted Answer

Risk workshop

Answer

Risk workshops bring together subject matter experts in facilitated sessions to collectively identify, discuss, and prioritize risks.

Question 5

The primary purpose of a risk register is to:

Accepted Answer

Document, track, and manage identified risks and their attributes

Answer

A risk register serves as the central repository for documenting identified risks, their assessments, owners, and treatment plans.

(RIMS) Risk and Insurance Management Society Certification Practice Test