What is the main objective of risk management?

To identify, assess, and minimize potential risks

A business regularly tests its (BCP) by conducting emergency drills and backup system checks. Why is this important

To ensure employees are familiar with emergency procedures

What is the best example of a risk avoidance strategy?

Not launching a product in a high-risk market

Which of the following is an example of financial risk?

A company’s product fails in the market due to poor design

What is the primary goal of Business Continuity Planning (BCP)?

To ensure businesses can continue operations during a crisis

What is the purpose of a Risk Matrix in risk management?

To categorize risks based on likelihood and impact

studbud

Risk Management & Business Continuity Planning

10 termsStudBud Administration

Imported from external platform

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
A store installs fire alarms and sprinkler systems to reduce fire hazards. Which risk mitigation strategy is being used?
Risk Acceptance
Risk Sharing
Risk Reduction
Risk Avoidance
2
What is the main objective of risk management?
To focus only on financial risks
To increase business profits
To identify, assess, and minimize potential risks
To eliminate all risks completely
3
Which of the following is NOT a key component of a Business Continuity Plan?
IT Backup and Data Protection
Risk Assessment
Emergency Response Plan
Employee Layoffs
4
During the COVID-19 pandemic, many companies allowed employees to work remotely. This is an example of:
Crisis Elimination
Risk Sharing
Business Continuity Planning
Risk Avoidance Planning
5
A business regularly tests its (BCP) by conducting emergency drills and backup system checks. Why is this important
To eliminate all possible risks
To increase the company’s tax benefits
To ensure employees are familiar with emergency procedures
To reduce operational costs
6
What is the best example of a risk avoidance strategy?
Not launching a product in a high-risk market
Investing in cybersecurity software to protect customer data
Buying insurance to cover business losses
Creating a customer loyalty program to increase sales
7
Which of the following is an example of financial risk?
A company’s product fails in the market due to poor design
A company takes excessive loans and struggles to repay them
A cyberattack exposes customer data
A natural disaster damages a company’s warehouse
8
What is the primary goal of Business Continuity Planning (BCP)?
To reduce employee salaries during a crisis
To ensure businesses can continue operations during a crisis
To prevent all risks from occurring
To increase company profits
9
A company purchases cybersecurity insurance to protect against financial losses from cyberattack. This is an example of:
Risk Sharing
Risk Avoidance
Risk Acceptance
Risk Reduction
10
What is the purpose of a Risk Matrix in risk management?
To calculate the financial cost of risk management
To categorize risks based on likelihood and impact
To create a business continuity plan
To eliminate all possible risks in a business

Risk Management & Business Continuity Planning Flashcards | StudBud