WGU D368 ENTERPRISE RISK MANAGEMENT EXAM
130 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
The probability an event will impact achieving objectives. - CORRECT ANSWER Risk
Terms defining the significance of a risk and how it is evaluated. - CORRECT
ANSWER Risk Criteria
The amount and type of risk an organization will accept in pursuit of its objectives.
- CORRECT ANSWER Risk Appetite
The specific maximum risk an organization is willing to take. - CORRECT ANSWER
Risk Tolerance
The cause or event to trigger or influence the risk. - CORRECT ANSWER Risk Driver
Periodic documentation of risk communicated to employees as well as the Board.
It is mainly a communication tool. - CORRECT ANSWER Risk Profile
The amount of risk that remains after risk treatment. - CORRECT ANSWER Residual
Risk
A structured, large group conversation about future uncertainties. - CORRECT
ANSWER Risk Workshop
,A graphic depiction of risks facing a firm; best for low-medium risks. - CORRECT
ANSWER Risk Map
Putting risk on another entity or sharing the risk through insurance or outsourcing.
- CORRECT ANSWER Risk Transfer
A group formed to analyze risks, report on emerging risks and inform the Board of
risk profile changes and risk exposure. - CORRECT ANSWER Risk Committee
The potential for gain or loss due to changes in economic conditions such as
interest rates, commodity prices, exchange rates, housing starts, etc. - CORRECT
ANSWER Market Risk
The potential for gain or loss due to changes in the creditworthiness or a customer
or counterparty. - CORRECT ANSWER Credit Risk
Risk affecting short term goals and day-to-day activities of a firm. - CORRECT
ANSWER Operational Risk
Enterprise Risk Management (ERM) is a holistic, integrated approach to managing
all risks facing an organization. Companies need it to identify, assess, and manage
risks to achieve objectives, enhance decision-making, ensure compliance, and
improve resilience against uncertainties. - CORRECT ANSWER What is ERM? Why
do companies need it?
, A feedback loop helps an organization by enabling continuous monitoring,
evaluation, and improvement of risk management processes, allowing for timely
adjustments to strategies and better alignment with objectives. - CORRECT
ANSWER How does a feedback loop help an organization?
Black Swan. - CORRECT ANSWER A rare, unexpected, high-impact event is called a
__________ __________.
Cybersecurity is the practice of protecting systems, networks, and data from
digital attacks. Corporations face risks such as data breaches, ransomware,
phishing, denial-of-service attacks, insider threats, and supply chain
vulnerabilities. - CORRECT ANSWER What is Cyber security and what kinds of risks
do corporations face?
The Sarbanes-Oxley Act (SOX) enhanced corporate governance by requiring
stronger internal controls, accurate financial disclosures, CEO/CFO certification of
reports, and independent audits, thereby strengthening risk management
practices related to financial reporting. - CORRECT ANSWER What did the
Sarbanes Oxley Act do for the Risk Management field?
The Dodd-Frank Act increased oversight of financial institutions, required risk
committees for large banks, mandated stress testing, and aimed to reduce
systemic risk, promoting better risk management in the financial sector. -
CORRECT ANSWER What did the Dodd Frank Act do for the Risk Management
field?
An internal audit is an independent, objective assurance and consulting activity
designed to add value and improve an organization's operations. It is used to
evaluate and enhance the effectiveness of risk management, control, and
130 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
The probability an event will impact achieving objectives. - CORRECT ANSWER Risk
Terms defining the significance of a risk and how it is evaluated. - CORRECT
ANSWER Risk Criteria
The amount and type of risk an organization will accept in pursuit of its objectives.
- CORRECT ANSWER Risk Appetite
The specific maximum risk an organization is willing to take. - CORRECT ANSWER
Risk Tolerance
The cause or event to trigger or influence the risk. - CORRECT ANSWER Risk Driver
Periodic documentation of risk communicated to employees as well as the Board.
It is mainly a communication tool. - CORRECT ANSWER Risk Profile
The amount of risk that remains after risk treatment. - CORRECT ANSWER Residual
Risk
A structured, large group conversation about future uncertainties. - CORRECT
ANSWER Risk Workshop
,A graphic depiction of risks facing a firm; best for low-medium risks. - CORRECT
ANSWER Risk Map
Putting risk on another entity or sharing the risk through insurance or outsourcing.
- CORRECT ANSWER Risk Transfer
A group formed to analyze risks, report on emerging risks and inform the Board of
risk profile changes and risk exposure. - CORRECT ANSWER Risk Committee
The potential for gain or loss due to changes in economic conditions such as
interest rates, commodity prices, exchange rates, housing starts, etc. - CORRECT
ANSWER Market Risk
The potential for gain or loss due to changes in the creditworthiness or a customer
or counterparty. - CORRECT ANSWER Credit Risk
Risk affecting short term goals and day-to-day activities of a firm. - CORRECT
ANSWER Operational Risk
Enterprise Risk Management (ERM) is a holistic, integrated approach to managing
all risks facing an organization. Companies need it to identify, assess, and manage
risks to achieve objectives, enhance decision-making, ensure compliance, and
improve resilience against uncertainties. - CORRECT ANSWER What is ERM? Why
do companies need it?
, A feedback loop helps an organization by enabling continuous monitoring,
evaluation, and improvement of risk management processes, allowing for timely
adjustments to strategies and better alignment with objectives. - CORRECT
ANSWER How does a feedback loop help an organization?
Black Swan. - CORRECT ANSWER A rare, unexpected, high-impact event is called a
__________ __________.
Cybersecurity is the practice of protecting systems, networks, and data from
digital attacks. Corporations face risks such as data breaches, ransomware,
phishing, denial-of-service attacks, insider threats, and supply chain
vulnerabilities. - CORRECT ANSWER What is Cyber security and what kinds of risks
do corporations face?
The Sarbanes-Oxley Act (SOX) enhanced corporate governance by requiring
stronger internal controls, accurate financial disclosures, CEO/CFO certification of
reports, and independent audits, thereby strengthening risk management
practices related to financial reporting. - CORRECT ANSWER What did the
Sarbanes Oxley Act do for the Risk Management field?
The Dodd-Frank Act increased oversight of financial institutions, required risk
committees for large banks, mandated stress testing, and aimed to reduce
systemic risk, promoting better risk management in the financial sector. -
CORRECT ANSWER What did the Dodd Frank Act do for the Risk Management
field?
An internal audit is an independent, objective assurance and consulting activity
designed to add value and improve an organization's operations. It is used to
evaluate and enhance the effectiveness of risk management, control, and
