WGU D368 STUDY MATERIAL EXAM 165 QUESTIONS
WITH VERIFIED ANSWER 2025/2026
Enterprise Risk Management - CORRECT ANSWER A structured approach for
identifying, assessing, managing, and monitoring risks across an organization
Risk Driver - CORRECT ANSWER The underlying cause or trigger of a risk event
Risk Consequence - CORRECT ANSWER The impact or result if a risk occurs
Risk Transformation - CORRECT ANSWER The process of changing the nature of a
risk, such as through insurance or outsourcing
Risk Tolerance - CORRECT ANSWER The amount of risk an organization is willing to
accept in pursuit of objectives
Risk Appetite - CORRECT ANSWER The overall level of risk an organization is willing
to take
Risk Criteria - CORRECT ANSWER Benchmarks and rules used to evaluate the
significance of risks
Risk Profile - CORRECT ANSWER The types and levels of risk an organization is
exposed to
,Black Swan Event - CORRECT ANSWER A rare, unpredictable event with high
impact that organizations must prepare for through resilience
Business Continuity Policy - CORRECT ANSWER A formal plan that ensures critical
operations continue during and after disruptions
Financial Leverage - CORRECT ANSWER The extent to which a company uses debt
to finance its operations
Financial Leverage (High) - CORRECT ANSWER The company relies heavily on debt
financing
Financial Leverage (Low) - CORRECT ANSWER The company relies more on equity
and less on debt
Reputation Risk - CORRECT ANSWER Risk of damage to an organization's image
due to negative public perception or social media backlash
Operational Risk - CORRECT ANSWER Risk of loss from failed internal processes,
people, or systems such as equipment breakdowns
Strategic Risk - CORRECT ANSWER Risk that business decisions or external shifts
undermine long-term objectives
Financial Risk - CORRECT ANSWER Risk of loss due to market fluctuations such as
interest rates or foreign exchange
, Economic Risk - CORRECT ANSWER Risk arising from macroeconomic changes such
as inflation or recession
Procurement Cost Risk - CORRECT ANSWER Risk that input prices rise
unexpectedly and affect profitability
Compliance Risk - CORRECT ANSWER Risk of penalties or losses due to failing to
follow laws or regulations
Environmental Risk - CORRECT ANSWER Risk of damage or disruption caused by
environmental events or sustainability issues
Market Risk - CORRECT ANSWER Risk of financial losses due to changes in market
prices or demand
Credit Risk - CORRECT ANSWER Risk that a borrower fails to repay debt in full or
on time
Insolvency Risk - CORRECT ANSWER Risk that an organization cannot meet its
financial obligations
Default Risk - CORRECT ANSWER Risk that a counterparty stops payments entirely
Funding Risk - CORRECT ANSWER Risk of being unable to secure financing when
needed
WITH VERIFIED ANSWER 2025/2026
Enterprise Risk Management - CORRECT ANSWER A structured approach for
identifying, assessing, managing, and monitoring risks across an organization
Risk Driver - CORRECT ANSWER The underlying cause or trigger of a risk event
Risk Consequence - CORRECT ANSWER The impact or result if a risk occurs
Risk Transformation - CORRECT ANSWER The process of changing the nature of a
risk, such as through insurance or outsourcing
Risk Tolerance - CORRECT ANSWER The amount of risk an organization is willing to
accept in pursuit of objectives
Risk Appetite - CORRECT ANSWER The overall level of risk an organization is willing
to take
Risk Criteria - CORRECT ANSWER Benchmarks and rules used to evaluate the
significance of risks
Risk Profile - CORRECT ANSWER The types and levels of risk an organization is
exposed to
,Black Swan Event - CORRECT ANSWER A rare, unpredictable event with high
impact that organizations must prepare for through resilience
Business Continuity Policy - CORRECT ANSWER A formal plan that ensures critical
operations continue during and after disruptions
Financial Leverage - CORRECT ANSWER The extent to which a company uses debt
to finance its operations
Financial Leverage (High) - CORRECT ANSWER The company relies heavily on debt
financing
Financial Leverage (Low) - CORRECT ANSWER The company relies more on equity
and less on debt
Reputation Risk - CORRECT ANSWER Risk of damage to an organization's image
due to negative public perception or social media backlash
Operational Risk - CORRECT ANSWER Risk of loss from failed internal processes,
people, or systems such as equipment breakdowns
Strategic Risk - CORRECT ANSWER Risk that business decisions or external shifts
undermine long-term objectives
Financial Risk - CORRECT ANSWER Risk of loss due to market fluctuations such as
interest rates or foreign exchange
, Economic Risk - CORRECT ANSWER Risk arising from macroeconomic changes such
as inflation or recession
Procurement Cost Risk - CORRECT ANSWER Risk that input prices rise
unexpectedly and affect profitability
Compliance Risk - CORRECT ANSWER Risk of penalties or losses due to failing to
follow laws or regulations
Environmental Risk - CORRECT ANSWER Risk of damage or disruption caused by
environmental events or sustainability issues
Market Risk - CORRECT ANSWER Risk of financial losses due to changes in market
prices or demand
Credit Risk - CORRECT ANSWER Risk that a borrower fails to repay debt in full or
on time
Insolvency Risk - CORRECT ANSWER Risk that an organization cannot meet its
financial obligations
Default Risk - CORRECT ANSWER Risk that a counterparty stops payments entirely
Funding Risk - CORRECT ANSWER Risk of being unable to secure financing when
needed
