STUDENTS SUCCESS
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
RSK2601 PACK ASSIGNMENTS 6 SEMESTER 2 2024 /2025 -
DISTINCTION GUARANTEED 100%
Risk position
ans:> Organization's desired gain or acceptable loss in value
Residual risk
ans:> Amount of uncertainty that remains after all risk management
efforts have been exhausted.
Annualized loss expectancy (ALE)
ans:> Expected monetary loss for an asset due to a risk over a one-year
period; calculated by multiplying single loss expectancy by annualized
rate of occurrence.
Key risk indicators (KRIs)
ans:> Metrics that provide an early signal of increasing risk exposures
for an enterprise.
Hazard
ans:> Potential for harm, often associated with a condition or activity
that, if left uncontrolled, can result in injury or illness.
Risk control
ans:> Action taken to manage a risk.
Risk tolerance
ans:> Amount of uncertainty an organization is willing to pursue or to
accept to attain its risk management goals.
Risk
,ans:> Uncertainty that has an effect on an objective, where outcomes
may include opportunities, losses, and threats.
Risk appetite
ans:> Amount of uncertainty an organization is willing to pursue or to
accept to attain its risk management goals.
Single loss expectancy (SLE)
ans:> Expected monetary loss every time a risk occurs; calculated by
multiplying asset value by exposure factor.
Whistleblowing
ans:> Reporting of an organization's violations of policies and processes
by employees.
Moral hazard
ans:> Situation in which one party engages in risky behavior knowing
that it is protected against the risk because another party will incur any
resulting loss.
Risk scorecard
ans:> Tool used to gather individual assessments of various
characteristics of risk (e.g., frequency of occurrence; degree of impact,
loss, or gain for the organization; degree of efficacy of current controls).
Principal-agent problem
ans:> Situation in which an agent (e.g., an employee) makes decisions
for a principal (e.g., an employer) potentially on the basis of personal
incentives that may not be aligned with the principal's incentives.
Duty of care
ans:> Principle that organizations should take all steps that are
reasonably possible to ensure the health, safety, and well-being of
employees and protect them from foreseeable injury.
Risk management
ans:> System for identifying, evaluating, and controlling actual and
potential risks to an organization.
Contingency plan
ans:> Protocol that an organization implements when an identified risk
event occurs.
,Conflict of interest
ans:> Situation in which a person or organization may benefit from
undue influence due to involvement in outside activities, relationships, or
investments that conflict with or have an impact on the employment
relationship or its outcomes.
What is the appropriate role for an HR manager in an investigatory
interview for a dischargeable offense?
ans:> Risk manager for the organization
Rationale: In this situation, the role of HR is to be proactive and manage
the legal and physical safety risks to the organization. HR managers
must be aware of the need to ensure due process to employees and to
provide a safe work environment for all employees. HR should not take a
prosecutorial or defense role; the organization should approach the
situation and the evidence objectively and calmly.
Which situation that leads to workplace violence can be controlled by an
organization?
ans:> Pressure for increased productivity
Rationale: Conditions causing employee frustration and anger can lead
to violence. Examples include pressure for productivity, rigid
management style, and layoffs.
Which best identifies the impact of cognitive barriers on risk
management?
ans:> Managers perceive risks in an outdated manner.
Rationale: Cognitive barriers to risk management relate to managers'
tendencies to rely on older perceptions of the risks they face and the
most effective ways of managing them.
What are the primary categories of barriers to effective risk
management?
ans:> Structural, cognitive, and cultural
Rationale: The primary categories of barriers to effective risk
management are structural, cognitive, and cultural. An organization's
structure, willingness to change, and values will impact its willingness to
engage in risk management. Time, money, and resources and location,
personnel, and equipment may be impacted by risk management efforts,
but they don't drive those efforts. Similarly, opportunities, threats, and
, weaknesses may be part of what the organization looks at as part of its
risk management efforts, but they don't drive those efforts.
Which option best defines risk?
ans:> Effect of uncertainty on the ability to meet organizational
objectives
Rationale: The ISO definition of risk is simply "the effect of uncertainty
on objectives." Uncertainty can be positive or negative in its effects. The
other choices emphasize negative risk or assessments of risk
occurrence.
What is the primary distinguishing characteristic of an enterprise risk
management framework?
ans:> Perception of risk as an integrated organizational issue
Rationale: An enterprise risk management (ERM) system, such as
COSO ERM, sees risk as an integrated issue that must be managed
across divisions and functions in an enterprise.
A technical recruiter receives a job description from a hiring manager.
One of the requirements listed by the manager states that the position is
not ideal for single parents. Which risk management strategy should the
technical recruiter use to avoid similar situations in the future?
ans:> Avoid the risk by training hiring managers and reviewing all job
descriptions before use.
Rationale: This risk can and should be avoided through training and a
review process. An employer cannot ignore, mitigate (lessen), or transfer
the legal obligation to avoid discrimination.
Management decides that training supervisors to identify and prevent
bullying is not necessary, and they do not fund a program budget. What
does this illustrate?
ans:> Organization's risk tolerance
Rationale: Management has decided that it is willing to accept the risk
that bullying will occur and possible organizational costs. This is an
example of an organization's risk tolerance, the amount of unmanaged
risk that management is willing to accept.
The HR department is instructed to fill a critical management position as
quickly as possible. Using multiple agencies will produce more
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
RSK2601 PACK ASSIGNMENTS 6 SEMESTER 2 2024 /2025 -
DISTINCTION GUARANTEED 100%
Risk position
ans:> Organization's desired gain or acceptable loss in value
Residual risk
ans:> Amount of uncertainty that remains after all risk management
efforts have been exhausted.
Annualized loss expectancy (ALE)
ans:> Expected monetary loss for an asset due to a risk over a one-year
period; calculated by multiplying single loss expectancy by annualized
rate of occurrence.
Key risk indicators (KRIs)
ans:> Metrics that provide an early signal of increasing risk exposures
for an enterprise.
Hazard
ans:> Potential for harm, often associated with a condition or activity
that, if left uncontrolled, can result in injury or illness.
Risk control
ans:> Action taken to manage a risk.
Risk tolerance
ans:> Amount of uncertainty an organization is willing to pursue or to
accept to attain its risk management goals.
Risk
,ans:> Uncertainty that has an effect on an objective, where outcomes
may include opportunities, losses, and threats.
Risk appetite
ans:> Amount of uncertainty an organization is willing to pursue or to
accept to attain its risk management goals.
Single loss expectancy (SLE)
ans:> Expected monetary loss every time a risk occurs; calculated by
multiplying asset value by exposure factor.
Whistleblowing
ans:> Reporting of an organization's violations of policies and processes
by employees.
Moral hazard
ans:> Situation in which one party engages in risky behavior knowing
that it is protected against the risk because another party will incur any
resulting loss.
Risk scorecard
ans:> Tool used to gather individual assessments of various
characteristics of risk (e.g., frequency of occurrence; degree of impact,
loss, or gain for the organization; degree of efficacy of current controls).
Principal-agent problem
ans:> Situation in which an agent (e.g., an employee) makes decisions
for a principal (e.g., an employer) potentially on the basis of personal
incentives that may not be aligned with the principal's incentives.
Duty of care
ans:> Principle that organizations should take all steps that are
reasonably possible to ensure the health, safety, and well-being of
employees and protect them from foreseeable injury.
Risk management
ans:> System for identifying, evaluating, and controlling actual and
potential risks to an organization.
Contingency plan
ans:> Protocol that an organization implements when an identified risk
event occurs.
,Conflict of interest
ans:> Situation in which a person or organization may benefit from
undue influence due to involvement in outside activities, relationships, or
investments that conflict with or have an impact on the employment
relationship or its outcomes.
What is the appropriate role for an HR manager in an investigatory
interview for a dischargeable offense?
ans:> Risk manager for the organization
Rationale: In this situation, the role of HR is to be proactive and manage
the legal and physical safety risks to the organization. HR managers
must be aware of the need to ensure due process to employees and to
provide a safe work environment for all employees. HR should not take a
prosecutorial or defense role; the organization should approach the
situation and the evidence objectively and calmly.
Which situation that leads to workplace violence can be controlled by an
organization?
ans:> Pressure for increased productivity
Rationale: Conditions causing employee frustration and anger can lead
to violence. Examples include pressure for productivity, rigid
management style, and layoffs.
Which best identifies the impact of cognitive barriers on risk
management?
ans:> Managers perceive risks in an outdated manner.
Rationale: Cognitive barriers to risk management relate to managers'
tendencies to rely on older perceptions of the risks they face and the
most effective ways of managing them.
What are the primary categories of barriers to effective risk
management?
ans:> Structural, cognitive, and cultural
Rationale: The primary categories of barriers to effective risk
management are structural, cognitive, and cultural. An organization's
structure, willingness to change, and values will impact its willingness to
engage in risk management. Time, money, and resources and location,
personnel, and equipment may be impacted by risk management efforts,
but they don't drive those efforts. Similarly, opportunities, threats, and
, weaknesses may be part of what the organization looks at as part of its
risk management efforts, but they don't drive those efforts.
Which option best defines risk?
ans:> Effect of uncertainty on the ability to meet organizational
objectives
Rationale: The ISO definition of risk is simply "the effect of uncertainty
on objectives." Uncertainty can be positive or negative in its effects. The
other choices emphasize negative risk or assessments of risk
occurrence.
What is the primary distinguishing characteristic of an enterprise risk
management framework?
ans:> Perception of risk as an integrated organizational issue
Rationale: An enterprise risk management (ERM) system, such as
COSO ERM, sees risk as an integrated issue that must be managed
across divisions and functions in an enterprise.
A technical recruiter receives a job description from a hiring manager.
One of the requirements listed by the manager states that the position is
not ideal for single parents. Which risk management strategy should the
technical recruiter use to avoid similar situations in the future?
ans:> Avoid the risk by training hiring managers and reviewing all job
descriptions before use.
Rationale: This risk can and should be avoided through training and a
review process. An employer cannot ignore, mitigate (lessen), or transfer
the legal obligation to avoid discrimination.
Management decides that training supervisors to identify and prevent
bullying is not necessary, and they do not fund a program budget. What
does this illustrate?
ans:> Organization's risk tolerance
Rationale: Management has decided that it is willing to accept the risk
that bullying will occur and possible organizational costs. This is an
example of an organization's risk tolerance, the amount of unmanaged
risk that management is willing to accept.
The HR department is instructed to fill a critical management position as
quickly as possible. Using multiple agencies will produce more
