RISK MANAGEMENT FUNDAMENTALS EXAM QUESTIONS WITH VERIFIED ANSWERS

RISK MANAGEMENT FUNDAMENTALS
EXAM QUESTIONS WITH VERIFIED
ANSWERS
Risk - ANSWERS-likelihood of a loss occurring. = Threat x Vulnerability
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Threat - ANSWERS-any activity that represents possible danger
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vulnerability - ANSWERS-a weakness; procedural, technical, or administrative
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Loss - ANSWERS- v5 v5


results in a compromise to business functions or assets. Occurs when a threat exp
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oses a vulnerability v5 v5




What are risk related concerns for businesses? - ANSWERS-
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Compromise of business functions, assets, driver of business costs, and profitabilit
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y vs survivability
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Business function - ANSWERS-activities or the
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work that a business unit or role performs to sell products/services.
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Business Assets - ANSWERS- v5 v5 v5


is anything with a measurable value to a company. Tangible or intangible.
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A company sells product via a website. Revenue is $5000 per hour. If the website
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fails for 2 hours what is the tangible and intangible loss assuming that the repair c
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ost is $1000. What is the tangible and intangible value? - ANSWERS-
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Tangiblevalue=$5,000*2+$1,000=$11,000
• IntangibleValue:
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- Future lost revenue
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- Cost of gaining a customer
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- Customer influence
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Tangible value - ANSWERS- v5 v5 v5


the actual cost of the asset. Tangiblevalue=lostrevenue+Repaircost
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Intangible value - ANSWERS- v5 v5 v5


value that can't be measured by cost for future loss of revenue, cost of gaining a c
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ustomer, and customer influence. v5 v5 v5




Driver of business cost - ANSWERS-
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Risk can drive business costs due to costs associated with managing risk by imple
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menting controls/countermeasures. v5




Profitability vs. survivability - ANSWERS-Profitability -
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ability of a company to make a profit --. Revenue - costs.
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