A) Benoit Mandelbrot Foundation B) International Organization for Standardization C) ISO 31000 Committee on Standards D) World Health Organization
A) Resources expended to mitigate risk should be less than the consequence of inaction. B) Resources expended must equal the total value of the assets being protected. C) Mitigation costs are irrelevant as long as the risk is completely removed. D) Expenditures should focus strictly on eliminating 100 percent of all identified threats.
A) An integral part B) A completely separate department C) A temporary trial phase D) An optional external review
A) Employee satisfaction and retention B) Marketing strategies and competitor pricing C) Financial profits and shareholder dividends D) Uncertainty and assumptions
A) Exclusively internal company records B) The best available information C) Information provided solely by external consultants D) Historical data older than ten years
A) Remain fixed and unchangeable once established B) Be dynamic, iterative and responsive to change C) Alter its core goals every single week D) Change only during annual corporate restructuring
A) Benoit Mandelbrot B) Standard ISO 31000 authors C) ISO standards committee D) An anonymous group of actuaries
A) Infinite variance distributions B) Pareto or power-law distributions C) Fat-tailed distributions D) Normal or near-normal probability distributions
A) It is managed entirely by government regulators. B) It never changes over time. C) It always results in zero financial loss. D) It is subject to regression to the mean and the law of large numbers.
A) Normal or near-normal distributions B) Strictly uniform distributions C) Bell-curve distributions with finite variance D) Fat-tailed distributions, e.g., Pareto or power-law distributions
A) It is subject to regression to the tail, rendering the law of large numbers ineffective. B) It follows standard normal probability curves. C) It has a predictable mean that never shifts. D) It only occurs in completely unregulated markets.
A) To use power-law distributions for simple everyday events B) To treat mild risk as if it could destroy the entire organization C) To ignore normal distributions entirely in favor of Pareto distributions D) To underestimate the wildness of risk, assuming it to be mild when it is wild
A) ISO 9001 B) ISO 27001 C) ISO 31000 D) ISO 14001
A) Risk identification B) Establishing the context C) Source analysis D) Problem analysis
A) Only the internal financial records B) The environment of the organization C) The personal lives of all employees D) Competitor stock prices exclusively
A) Their voting records in national elections B) Their home addresses and phone numbers C) Their personal credit scores D) Their identity and objectives
A) Identify potential risks B) Execute immediate mitigation strategies C) Purchase insurance policies D) Dismiss all project stakeholders
A) Mandatory structural reorganizations B) Guaranteed legal penalties C) Only catastrophic financial failures D) Events that cause problems or benefits
A) Exclusively external to the organization B) Strictly internal to the system C) Only within legislative bodies D) Internal or external to the system
A) Management is a legally trademarked term. B) Management implies that risks can be completely eliminated. C) Mitigation sounds more professional in business reports. D) Risk deals with factors of decision-making that cannot be managed.
A) Government regulations, tax policies, and trade tariffs B) Stakeholders of a project, employees of a company, or the weather over an airport C) Accounting software errors, server crashes, and power outages D) Stock market crashes, inflation rates, and global pandemics
A) Unidentified random occurrences B) Guaranteed positive outcomes C) Identified threats D) Planned organizational changes
A) Shareholders, customers, and legislative bodies such as the government B) Suppliers, distributors, and logistics partners C) Consultants, auditors, and external contractors D) Competitors, media outlets, and general publics
A) It guarantees an immediate increase in profits B) It forces the government to take over operations C) It will automatically improve employee morale D) It may endanger funding of the project
A) It becomes public property automatically B) It loses all value to competitors C) It will be safely encrypted by external hackers D) It may be stolen by employees even within a closed network
A) It causes a minor delay in flight schedules B) It improves the navigational equipment C) It recharges the aircraft's emergency batteries D) It may make all people on board immediate casualties
A) Stock exchange listings and marketing budgets B) Daily weather conditions and employee turnover C) Culture, industry practice, and compliance D) Company size, office location, and CEO preference
A) Any change in government tax laws B) Any event that increases the speed of daily operations C) Any event that may prevent an objective from being achieved D) Any decision made by executive management
A) Legal compliance contracts B) Different scenarios C) Financial balance sheets D) Employee performance reviews
A) A breakdown of possible risk sources B) A classification of software bugs C) A database of historical financial losses D) A hierarchical list of corporate job titles
A) Through random audits conducted by external consultants B) By analyzing daily social media mentions C) By reviewing quarterly tax filings D) Through answers to a questionnaire compiled from the taxonomy and best practices
A) Comparing company expenses with industry averages B) Checking available lists of known risks for application to a particular situation C) Testing software code for basic syntax errors D) Asking employees to guess what might go wrong each morning
A) Tax rates, legal regulations, and government policies B) Profit margins, employee counts, and office sizes C) Resources at risk, threats, modifying factors, and consequences D) Marketing strategies, customer feedback, and sales data
A) A public relations crisis management plan B) An automated employee payroll system C) A binding legal contract for insurance D) A variety of approaches for risk identification
A) Only when mandated by external regulatory bodies B) Yes, it should be capable of continual improvement and enhancement C) No, it should remain standardized and never be modified D) Only during periods of severe financial loss
A) Human factors B) Personal political beliefs C) Employee salary expectations D) Union membership numbers
A) Hidden from lower-level employees B) Confidential to board members C) Secretive and executive-only D) Transparent and inclusive
A) Murphy's law B) The law of supply and demand C) The law of large numbers D) Moore's law
A) Zero mean and zero variance B) Fixed mean with normal distribution C) Infinite mean or variance D) Constant and predictable variance
A) Standard deviation shift B) Regression to the tail C) Regression to the mean D) Central limit theorem
A) 1970s B) 1990s C) 2000s D) 1980s
A) Implicitly B) Yes C) No D) Only briefly
A) Since the 1970s B) Since the 1980s C) Since the 1990s D) Since the 2000s
A) 1980s B) 2010s C) 1990s D) 2000s
A) Opportunities B) Vulnerabilities C) Threats D) Liabilities
A) Usually positive B) Always beneficial C) Always neutral D) Usually negative
A) Groupthink B) Analysis paralysis C) Target fixation D) Scope creep
A) 1st Ed. B) 4th Ed. C) 3rd Ed. D) 6th Ed.
A) 6th Ed. B) 1st Ed. C) 4th Ed. D) 2nd Ed.
A) Numerical analysis of effects B) Monitoring the implementation C) Identifying threats D) Implementing agreed-upon plans
A) Guaranteed market profits B) Consistent decision-making C) Political instability D) Fixed percentage sizing
A) Maximizing negative effects B) Ignoring potential consequences C) Avoiding the threat D) Increasing the probability of the threat
A) The 1980s B) The 1920s C) The 1950s D) The 1900s
A) The 1950s B) The 2000s C) The 1920s D) The 1970s
A) Tricky B) Irrelevant C) Simple and straightforward D) Fully automated
A) Opportunity cost B) Fixed asset depreciation C) Employee turnover D) Market inflation
A) Office space B) Resource usage C) Employee headcount D) Advertising budgets
A) Intangible assets B) Cash reserves C) Inventory in warehouses D) Buildings and vehicles
A) Bill Gates B) Isaac Newton C) Albert Einstein D) Robert Courtney Jr.
A) Actual loss evaluation B) Annual ledger expense C) Annualized loss expectancy D) Assessed liability estimate
A) European banking institutions B) US governmental agencies C) Private tech startups D) Global health organizations
A) Asset valuation B) Employee holiday schedules C) Building architectural designs D) Office furniture colors
A) Two B) Five C) Three D) Four
A) Transfer B) Avoidance C) Reduction D) Acceptance
A) Avoidance B) Reduction C) Transfer D) Acceptance
A) A guarantee B) A fee C) An asset D) A penalty
A) Reduction B) Acceptance C) Avoidance D) Transfer
A) Third-party fees B) Insurance policies C) Financial assets D) Possibilities
A) Reduction B) Transfer C) Avoidance D) Acceptance
A) Enhancement B) Acquisition C) Reimbursement D) Exploitation
A) Asset Control and Transfer B) Avoidance and Control Allocation Technique C) Accepted Contingency Asset Transfer D) Acquisition Category
A) Exploit, share, enhance, ignore B) Avoid, control, accept, transfer C) Eliminate, mitigate, insure, budget D) Accept, transfer, avoid, reduce
A) They only delivered software in the final phase B) They avoided treating high-risk patients C) They had prohibitive Halon system costs D) They used water sprinklers that caused damage
A) A pre-event prevention strategy B) A post-event compensatory mechanism C) A complete hazard eradication tool D) A risk-retention pool
A) The court judge B) The insurance agent C) The policyholder D) The third-party contractor
A) Into multiple categories B) Exclusively into risk transfer C) Into a single mandatory category D) Strictly into bankruptcy proceedings
A) True self-insurance B) Commercial property insurance C) Mandatory liability insurance D) State-mandated health insurance
A) Minor office property damage B) Routine employee turnover C) War D) Common computer viruses
A) Junior staff B) Facility management C) Top management D) IT management
A) Impact assessment B) Risk treatment planning C) Vulnerability assessment D) Threat assessment
A) Vulnerability assessment B) Control implementation C) Impact assessment D) Risk mitigation strategy development
A) Reporting them to external regulators. B) Absorbing them entirely without coverage. C) Ignoring them completely. D) Purchasing insurance policies.
A) Only after a major corporate failure. B) On a daily basis without exception. C) Periodically. D) Once every decade.
A) Employee benefit packages. B) Reputation. C) Physical office buildings. D) Short-term profits.
A) Dodd-Frank B) Basel I C) Bretton Woods D) Basel III
A) Indemnification provisions B) Various strategies C) Standard contract language D) Limitation of liability clauses
A) CH2M Hill B) Petri Keskitalo C) Samuel Greengard D) La Gorce Country Club
A) American B) Swedish C) British D) Norwegian
A) 2020 B) 2015 C) 2005 D) 2010
A) Keskitalo v. UDC B) Witt v. La Gorce Country Club C) Basel v. Greengard D) UDC v. CH2M Hill
A) Keskitalo v. Greengard B) Witt v. La Gorce Country Club C) Basel v. La Gorce D) UDC v. CH2M Hill
A) Jurisdiction-specific indemnification clauses B) Industry-standard contract language C) Verbal agreements between parties D) Novel and customized legal terminology
A) Failure mode and effects analysis B) Hazard analysis C) Hazard and operability study D) Fault tree analysis
A) A spreadsheet program B) Customs risk management frameworks C) Diagramming software only D) Safety assurance case generators
A) Fault Tree Analysis B) Failure Mode and Effects Analysis C) Hazard and Operability Study D) Safety Assurance Case
A) Safety critical devices B) All types of medical devices without exception C) Customs inspection equipment D) Only non-implantable administrative devices
A) Lack of experience B) A healthy skepticism C) Extreme optimism D) Total indifference
A) Project profit margin B) Customer satisfaction score C) Employee salary D) Opening date
A) Minor tasks B) Major programs C) Standard assignments D) Micro initiatives
A) Local bicycle racks B) Residential sheds C) Neighborhood parks D) Major bridges |