Safety and Compliance Risk Management & Assessment

Question 1

What is the first step in the risk management process?

Accepted Answer

Risk identification — recognizing potential threats and vulnerabilities

Answer

Risk identification is the critical first step in risk management, involving systematic recognition and documentation of potential threats and vulnerabilities.

Question 2

What does a risk matrix assess?

Accepted Answer

The probability and impact of identified risks

Answer

A risk matrix evaluates risks based on two dimensions: the probability (likelihood) of occurrence and the potential impact (severity) if the risk materializes.

Question 3

Which risk response strategy involves reducing the likelihood or impact of a risk?

Accepted Answer

Risk mitigation

Answer

Risk mitigation involves taking proactive steps to reduce either the probability of a risk occurring or its potential impact if it does occur.

Question 4

What is the purpose of a risk register?

Accepted Answer

To document, track, and manage all identified risks throughout a project or operation

Answer

A risk register is a living document that records all identified risks, their assessments, response plans, and status updates throughout the lifecycle of a project or operation.

Question 5

What distinguishes inherent risk from residual risk?

Accepted Answer

Inherent risk exists before controls; residual risk remains after controls are applied

Answer

Inherent risk is the level of risk present before any controls are implemented, while residual risk is the level that remains after controls and mitigations are applied.

Safety and Compliance Practice Test

Safety and Compliance Practice Test

Safety and Compliance Risk Management & Assessment