RISK MANAGEMENT EXAM
QUESTIONS AND ANSWERS
What are the primary categories of barriers to effective risk management? - answer-
Structural, cognitive, and cultural. 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 best identifies the impact of cognitive barriers on risk management? - answer-
Managers perceive risks in an outdated manner. 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.
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?
Answers - answer- Avoid the risk by training hiring managers and reviewing all job
descriptions before use. 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.
What is the appropriate role for an HR manager in an investigatory interview for a
dischargeable offense? - answer- Risk manager for the organization.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 option best defines risk? - answer- Effect of uncertainty on the ability to meet
organizational objectives. 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? - answer- Perception of risk as an integrated organizational issue.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.
QUESTIONS AND ANSWERS
What are the primary categories of barriers to effective risk management? - answer-
Structural, cognitive, and cultural. 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 best identifies the impact of cognitive barriers on risk management? - answer-
Managers perceive risks in an outdated manner. 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.
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?
Answers - answer- Avoid the risk by training hiring managers and reviewing all job
descriptions before use. 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.
What is the appropriate role for an HR manager in an investigatory interview for a
dischargeable offense? - answer- Risk manager for the organization.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 option best defines risk? - answer- Effect of uncertainty on the ability to meet
organizational objectives. 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? - answer- Perception of risk as an integrated organizational issue.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.
