3.6 KNOWLEDGE CHECK - RISK MANAGEMENT EXAM QUESTIONS AND ANSWERS

3.6 KNOWLEDGE CHECK - RISK
MANAGEMENT EXAM QUESTIONS
AND ANSWERS
Which step in the risk management process involves actions taken to reduce or
eliminate the risk factor?

a. Risk identification
b. Risk assessment
c. Risk prioritization
d. Risk mitigation
e. Risk extension - answer- risk mitigation

Events that have no history, yet they are considered possible and, with some
speculation, can be assessed in terms of likelihood and potential impact might be
called:

a. Known-known
b. Known-unknown
c. Unknown-unknown
d. Unknown-known
e. "Freak events" - answer- known-unknown

In a risk classification matrix, with risks mapped according to likelihood and impact,
those risks positioned where on the matrix call for immediate attention?

a. Lower right corner
b. In the center
c. Lower left corner
d. Upper right corner
e. Upper left corner - answer- upper right corner

A tool commonly used to identify, evaluate, and prioritize mistakes and problems that
can occur in a business is called:

a. Failure mode effects analysis
b. Hotspot identification
c. Radar mapping
d. Risk projection analysis
e. 5S analysis - answer- failure mode effects analysis

A company's risk-mitigation plan should be ________________________________.


a. Done by distribution channels.
b. Performed on a location-by-location basis.
c. Left up to each part of your supply chain.