Which of the following companies failed to manage risk properly?

A retailer that lost 45 million credit card details in a data breach

What is a key reason why companies must continuously review and align risk management with strategy?

To ensure risk management supports changing business objectives

Which of the following is an external risk?

A natural disaster damaging business infrastructure

What is NOT one of the four methods for mitigating risk?

Ignoring (choosing to do nothing)

Why did reckless risk-taking in the banking industry lead to a global financial crisis?

Manage and assess the risks of their financial decisions properly

Why did companies in the videocassette industry fail?

They increased investments in technology, They did not adapt to the rise of digital media and streaming

What is the most critical aspect of strategic risk?

Changes in customer demand and competition

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unit 6

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Questions 10

Answers

1
Which of the following companies failed to manage risk properly?
A retailer that lost 45 million credit card details in a data breach
A manufacturer that diversified its supply chain
A software company that upgraded its cybersecurity
A financial institution that followed strict lending guidelines
2
What is a key reason why companies must continuously review and align risk management with strategy?
To focus only on financial risks
To completely eliminate all risks
To react to risks only when they occur
To ensure risk management supports changing business objectives
3
Which of the following is an external risk?
A natural disaster damaging business infrastructure
Workplace accidents in a factory
IT system failures causing service disruptions
Errors in ordering raw materials
4
What is NOT one of the four methods for mitigating risk?
Transferring (using insurance or contracts)
Ignoring (choosing to do nothing)
Treating (implementing countermeasures)
Terminating (stopping risky processes)
5
Why did reckless risk-taking in the banking industry lead to a global financial crisis?
Manage and assess the risks of their financial decisions properly
Customers stopped using banking services completely.
Governments provided unlimited financial support to banks.
Banks invested heavily in secure and low-risk assets.
6
What is the first step in managing risk?
Transfer Risks
Identify Risks
Recognize Strategic Objectives
Review and Align with Strategy
7
Which risk category includes IT failures, supply chain disruptions, and employment risks?
Strategic risk
Hazard risk
Financial risk
Operational risk
8
Why did companies in the videocassette industry fail?
They increased investments in technology
They secured strong financial backing
They expanded into new global markets
They did not adapt to the rise of digital media and streaming
9
What is the most critical aspect of strategic risk?
Workplace safety incidents
Supply chain disruptions
Changes in customer demand and competition
Currency exchange rate fluctuations
10
What risk mitigation method involves using contracts or insurance?
Tolerating
Treating
Terminating
Transferring

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