WGU D368 ENTERPRISE RISK MANAGEMENT EXAM
148 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
A chance of loss or no loss, but no chance of gain - CORRECT ANSWER
Classification of Pure Risk
a chance of loss, no loss, or gain - CORRECT ANSWER Classification of Speculative
Risk
uncertainty over the size of cash flows resulting from possible changes in the cost
of raw materials and other inputs, as well as cost-related changes in the market
for completed products and other outputs - CORRECT ANSWER Speculative risk:
price risk
the risk that customers or other creditors will fail to make promised payments as
they come due - CORRECT ANSWER Speculative risk: credit risk
the perceived amount of risk based on an individual's or organization's opinion -
CORRECT ANSWER Classification of Subjective risk
the measurable variation in uncertain outcomes based on facts and data -
CORRECT ANSWER Classification of Objective risk
- familiarity and control
- consequences over likelihood
,- risk awareness - CORRECT ANSWER Reasons that subjective and objective risk
can differ substantially:
a risk that affects only some individuals, businesses, or small groups - CORRECT
ANSWER Classification of Diversifiable risk
a risk that affects a large segment of society at the same time - CORRECT ANSWER
Classification of No diversifiable risk
the potential for a major disruption in the function of an entire market or financial
system - CORRECT ANSWER type of no diversifiable risk, systemic risk
arise from property, liability, or personnel loss exposures and are generally the
subject of insurance - CORRECT ANSWER Classification of quadrant risk, hazard
fall outside the hazard risk category and arise from people or a failure in
processes, systems, or controls, including those involving information technology -
CORRECT ANSWER Classification of quadrant risk, operational
arise from the effect of market forces on financial assets or liabilities and include
market risk, credit risk, liquidity risk, and price risk - CORRECT ANSWER
Classification of quadrant risk, financial
arise from trends in the economy and society, including changes in the economic,
political, and competitive environments, as well as from demographic shifts -
CORRECT ANSWER Classification of quadrant risk, strategic
, uncertainty about an investment's future value because of potential changes in
the market for that type of investment - CORRECT ANSWER market risk under
financial quadrant of risk
the risk that an asset cannot be sold on short notice without incurring a loss -
CORRECT ANSWER liquidity risk under financial quadrant of risk
- pure and speculative risk
- subjective and objective risk
- diversifiable and no diversifiable risk
- quadrants of risk (hazard, operational, financial, and strategic) - CORRECT
ANSWER Commonly used classifications of risks
a foundation for applying the risk management process throughout the
organization - CORRECT ANSWER Risk management framework
- lead and establish accountability
- align and integrate
- allocate resources
- communicate and report - CORRECT ANSWER generic ERM Framework
an individual accountable for the identification, assessment, treatment, and
monitoring of risks in a specific environment - CORRECT ANSWER Risk owner
148 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
A chance of loss or no loss, but no chance of gain - CORRECT ANSWER
Classification of Pure Risk
a chance of loss, no loss, or gain - CORRECT ANSWER Classification of Speculative
Risk
uncertainty over the size of cash flows resulting from possible changes in the cost
of raw materials and other inputs, as well as cost-related changes in the market
for completed products and other outputs - CORRECT ANSWER Speculative risk:
price risk
the risk that customers or other creditors will fail to make promised payments as
they come due - CORRECT ANSWER Speculative risk: credit risk
the perceived amount of risk based on an individual's or organization's opinion -
CORRECT ANSWER Classification of Subjective risk
the measurable variation in uncertain outcomes based on facts and data -
CORRECT ANSWER Classification of Objective risk
- familiarity and control
- consequences over likelihood
,- risk awareness - CORRECT ANSWER Reasons that subjective and objective risk
can differ substantially:
a risk that affects only some individuals, businesses, or small groups - CORRECT
ANSWER Classification of Diversifiable risk
a risk that affects a large segment of society at the same time - CORRECT ANSWER
Classification of No diversifiable risk
the potential for a major disruption in the function of an entire market or financial
system - CORRECT ANSWER type of no diversifiable risk, systemic risk
arise from property, liability, or personnel loss exposures and are generally the
subject of insurance - CORRECT ANSWER Classification of quadrant risk, hazard
fall outside the hazard risk category and arise from people or a failure in
processes, systems, or controls, including those involving information technology -
CORRECT ANSWER Classification of quadrant risk, operational
arise from the effect of market forces on financial assets or liabilities and include
market risk, credit risk, liquidity risk, and price risk - CORRECT ANSWER
Classification of quadrant risk, financial
arise from trends in the economy and society, including changes in the economic,
political, and competitive environments, as well as from demographic shifts -
CORRECT ANSWER Classification of quadrant risk, strategic
, uncertainty about an investment's future value because of potential changes in
the market for that type of investment - CORRECT ANSWER market risk under
financial quadrant of risk
the risk that an asset cannot be sold on short notice without incurring a loss -
CORRECT ANSWER liquidity risk under financial quadrant of risk
- pure and speculative risk
- subjective and objective risk
- diversifiable and no diversifiable risk
- quadrants of risk (hazard, operational, financial, and strategic) - CORRECT
ANSWER Commonly used classifications of risks
a foundation for applying the risk management process throughout the
organization - CORRECT ANSWER Risk management framework
- lead and establish accountability
- align and integrate
- allocate resources
- communicate and report - CORRECT ANSWER generic ERM Framework
an individual accountable for the identification, assessment, treatment, and
monitoring of risks in a specific environment - CORRECT ANSWER Risk owner
