stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Risk Management Special Final Exam Flashcards | StudBud
Explore
/
Risk Management Special Final Exam
Risk Management Special Final Exam
50 terms
·
StudBud Administration
·
6 plays
Imported from external platform
Flashcards
50 cards
F
Practice quiz
P
Host live
L
Questions
50
Answers
1
What is risk?
The chance of losing money
The chance of getting free money
A fun game
A type of bank
2
Market risk means prices can:
Go up and down
Only go down
Only go up
Stay the same forever
3
What is an example of operational risk?
A clean office
A birthday party
A computer failure
A sunny day
4
Who should know about risk management?
Only new workers
No one
Only the CEO
All employees
5
Credit risk happens when someone:
Wins a lottery
Buys a car
Doesn’t pay back a loan
Pays too much
6
What does a performance metric measure?
How much water a company drinks
How well a company manages risks
The weight of a computer
The number of employees in a team
7
What should a company do after finding a risk?
Ignore it
Take action to fix it
Make it bigger
Hide it
8
What does a control framework do?
Increases risks
Makes work harder
Stops all risks forever
Helps reduce risks in a business
9
A company can improve risk management by:
Ignoring customer complaints
Training employees and using good systems
Avoiding new technology
Stopping all work
10
What is a risk dashboard?
A car dashboard
A video game
A type of wallet
A tool that shows important risk information
11
Why is communication important in risk management?
It creates confusion
It is not needed
It helps everyone understand risks
It increases risks
12
Key Risk Indicators (KRIs) help:
Track potential risks before they become big problems
Only measure profits
Remove all risks instantly
Increase risks
13
What does risk monitoring mean?
Closing the business
Ignoring risks
Checking risks regularly
Writing long reports
14
What do Key Risk Indicators (KRIs) do?
Hide problems
Stop people from working
Help find risks early
Make risks worse
15
Who is responsible for managing risks in a company?
Only the customers
Only the janitor
Only the investors
Everyone
16
Why is risk reporting important?
It is only for large companies
It wastes paper
It helps people understand risks
It makes things harder
17
If a company has poor risk management, it may:
Work without any employees
Get free loans
Become rich overnight
Lose money or fail
18
What does liquidity risk mean?
The risk of drinking too much water
The risk of not having enough cash to pay for things
The risk of forgetting passwords
The risk of buying too many stocks
19
What is credit risk?
The risk of making too much money
The risk of losing your credit card
The risk of running out of cash
The risk that someone won’t repay a loan
20
Stocks and bonds are examples of:
Investments
Holidays
Bank passwords
Snacks
21
What is a tool for managing operational risk?
A lottery ticket
A birthday calendar
A fitness tracker
Process mapping
22
Who can cause operational risks?
Employees and managers
Only customers
No one
Only robots
23
A bank checks credit risk before:
Hiring a driver
Giving a loan
Selling food
Hosting a party
24
A company follows compliance monitoring to:
Follow the rules
Ignore risks
Do whatever they want
Make random decisions
25
Why do companies have risk controls?
To increase risk
To prevent problems before they happen
To avoid making money
To create more work
26
A tool used to manage financial risk is:
A calculator
A shopping list
Derivatives
A piggy bank
27
What does “VaR” stand for?
Video and radio
Very accurate report
Value at Risk
Vacation and rest
28
Why is risk reporting important?
It helps stakeholders make good decisions
It wastes time
It causes more problems
It is only for large companies
29
Who needs to know about risk management in a company?
No one, because risk isn’t important
All employees and managers
Only new employees
Only the cleaning staff
30
Risk control helps a company:
Close down
Avoid making money
Stay safe and avoid problems
Create more risks
31
Why is human behavior important in risk management?
Robots do all the work
Risks only come from computers
People can make mistakes that cause risks
People never cause risks
32
What is an example of operational risk?
Going on vacation
A sunny day
A computer system failure
Eating lunch
33
Which of the following is a type of financial risk?
Taking a lunch break
Making a phone call
Running out of office supplies
Market risk
34
What is the main goal of portfolio diversification?
To reduce risk by investing in different things
To spend all your money at once
To avoid all risks forever
To buy only one type of investment
35
What helps manage operational risk?
Playing games
Closing the business
Taking a nap
Process mapping
36
Why do people invest in different things?
To lose all money
To make things harder
To lower risk
To forget about savings
37
What does an internal audit do?
Plans birthday parties
Deletes emails
Checks a company’s risks and controls
Buys office furniture
38
A common way to manage financial risk is:
Using different investments
Ignoring risk
Buying only one stock
Spending all money at once
39
What is a risk dashboard?
A car dashboard
A shopping list
A tool to track risks
A type of credit card
40
What is a derivative?
A financial tool to manage risk
A phone app
A math problem
A type of fruit
41
Liquidity risk means:
Winning a prize
Buying a house
Running out of food
Not having enough cash
42
A cyberattack is an example of:
Operational risk
A new investment
A weather forecast
A vacation plan
43
What happens if a company ignores risks?
Nothing changes
It becomes more successful
It can lose money or fail
It makes more profits
44
Reporting risk information helps:
Make better business decisions
Create more problems
Confuse employees
Hide issues
45
Which of the following is NOT an operational risk?
Winning the lottery
Equipment failures
Employee mistakes
Cybersecurity breaches
46
What is an internal audit?
A way to avoid work
A party for employees
A check-up on a company’s risks and controls
A new type of investment
47
Compliance monitoring helps a company:
Ignore regulations
Close down the business
Make unlimited profits
Follow rules and avoid penalties
48
A company can reduce risk by:
Following rules and best practices
Spending all profits on parties
Ignoring all problems
Hiring fewer employees
49
Operational risk is caused by:
Watching TV
Playing video games
People, systems, or processes
Eating lunch
50
Why is training employees important?
It stops people from working
It wastes time
It helps prevent mistakes
It makes risks worse
