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EXIN Management of Risk Foundation Sample Questions:

1. Identify the missing words in the following sentence. Because organizations [ ? ] they need to use the environmental risk management' specialism.

A) see brand and reputation as key assets
B) are concerned about stakeholder perceptions
C) face financial penalties for polluting waterways
D) fail to deliver minimum standards

2. Which M_o_R principle advocates that an organization's risk appetite should be within the organization's risk capacity?

A) Aligns with objectives
B) Fits the context
C) Provides clear guidance
D) Informs decision-making

3. What is the purpose of using an M_o_R'health check'?

A) Provide alternative assurance and approval processes at key decision points within a programme
B) Examine an organization's current risk management practices to identify areas for improvement
C) Understand the nature of risks facing an organization and the actions needed to respond
D) Show which organizational activities that risk management should be applied to

4. Which describes the threat response option 'accept the risk'?

A) Partake in a pain/gain contract with another party for the specified risk
B) Take no action except monitor the risk to ensure it remains tolerable
C) Carry out an action to make the uncertain situation certain
D) Perform an action to minimize the impact of the risk should it occur

5. Which describes 'residual' risk exposure?

A) Effect on objectives if a risk occurs after implementing risk response actions
B) Proximity of a risk before risk response actions are completed
C) Chance of a risk occurring before risk response actions commence
D) Probability of a secondary risk occurring

Solutions: