STEP Risk Assessment & Mitigation 1

Question 1

What is the first step in the risk management process?

Accepted Answer

Identify potential risks through systematic analysis

Answer

Systematic risk identification is the foundational first step, as risks cannot be managed or mitigated until they are identified and understood.

Question 2

How should risks be prioritized?

Accepted Answer

Based on probability of occurrence and potential impact

Answer

Prioritizing by probability and impact ensures resources are allocated to the risks most likely to cause significant harm, maximizing risk management effectiveness.

Question 3

What is risk mitigation?

Accepted Answer

Taking actions to reduce the likelihood or impact of identified risks

Answer

Risk mitigation involves specific actions to reduce either the likelihood of risk occurrence or its potential impact, bringing residual risk to acceptable levels.

Question 4

When should a risk register be updated?

Accepted Answer

Continuously as new risks emerge and existing risks change

Answer

Continuous updates to the risk register ensure it reflects the current risk landscape, enabling timely responses to new and changing risks.

Question 5

What is residual risk?

Accepted Answer

The risk remaining after mitigation measures have been applied

Answer

Residual risk is what remains after mitigation measures are applied, and it must be accepted, further reduced, or transferred based on organizational risk tolerance.

(STEP) Society of Trust and Estate Practitioners Certification Practice Test

(STEP) Society of Trust and Estate Practitioners Certification Practice Test

STEP Risk Assessment & Mitigation 1