EX0-004 Management of Risk Foundation

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EXIN · EX0-004

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Question 1

Single choice

What is the initial probability recorded in the risk register based on?

A
Proximity of the risk
B
Stage of the activity
C
Post-response assessment
D
Pre-response assessment

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Correct answerD

Question 2

Single choice

Which is a purpose of 'embedding and reviewing' M_o_R?

A
Maximizing the return on investment in risk management
B
Assuring the appointment of risk owners
C
Ensuring the availability of appropriate techniques used in the risk management process steps
D
Reporting on the risk response plan'

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Correct answerA

Question 3

Single choice

Which describes the cause of a risk?

A
Likelihood of the risk occurring
B
Potential trigger point for a risk
C
Impact of the risk on an activity
D
Risk remaining after implementing a risk response

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Correct answerB

Question 4

Single choice

Which is a purpose of the 'risk management policy'?

A
Explain the actions required to implement risk management
B
Define the Specific risk management activities that will be performed for an activity
C
Describe how risk management practices will be implemented throughout an organization
D
Record information about threats and opportunities for an organizational activity

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Correct answerC

Question 5

Single choice

What is the lack of senior management support a common barrier to?

A
Identifying key performance indicators
B
Developing a risk communications plan
C
Implementing the steps in the risk management process
D
Involving stakeholders in risk identification

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Correct answerC

Question 6

Single choice

What step is used to determine those risks which have the greatest effect on the objectives of a planned activity?

A
Identify
B
Assess
C
Plan
D
Implement

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Correct answerB

Question 7

Single choice

Which is recorded in the risk register in the 'identify - risks' step?

A
Lessons learned from completed activities
B
Responses to risks
C
Assessed probability of risks
D
Description of the risk

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Correct answerD

Question 8

Single choice

What is the difference between a risk and an issue?

A
An issue has a short time-scale proximity and risk has medium-or long-term proximity
B
An issue impacts on quality, a risk impacts on benefits
C
An Issue is a risk that has occurred, a risk is yet to occur
D
A risk can impact on all activities, an issue impacts on project deliverables only

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Correct answerC

Question 9

Single choice

What is an issue?

A
An uncertain event that may occur in the future
B
An outcome perceived as negative by one or more stakeholders
C
An intangible artefact produced as a result of a planned activity
D
A relevant event that has happened requiring management action

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Correct answerD

Question 10

Single choice

Which is a common barrier to implementing the risk management process?

A
Lack of a high-risk appetite at senior management level
B
Lack of an appropriate response to a risk in an activity's risk register
C
Lack of an assigned risk owner
D
Lack of risk facilitation resources and time

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Correct answerD

Question 11

Single choice

What M_o_R principle states that managing risks is most effective when staff members are rewarded for proactive risk management behaviour?

A
Informs decision-making
B
Facilitates continual improvement
C
Creates a supportive culture
D
Achieves measurable value

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Correct answerC

Question 12

Single choice

Which is a central 'M_o_R approach' document?

A
Risk management policy
B
Risk register
C
Risk improvement plan
D
Risk communications plan

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Correct answerA

Question 13

Single choice

Identify the missing words in the following sentence. The primary outcome of the [ ? ] principle is that the identification of risks is thorough.

A
engages stakeholders
B
provides clear guidance
C
creates a supportive culture
D
facilitates continual improvement

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Correct answerA

Question 14

Single choice

Which BEST describes an area of uncertainty at the programme perspective?

A
Disruptions to operations during business change implementation
B
Introduction of new laws that affect core business activities
C
Availability of resources for the day-to-day delivery of services to customers
D
Changes to the scope of defined business products

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Correct answerA

Question 15

Single choice

Which is a use of the risk management policy in the 'identify - context' step for an activity?

A
Recording departures from the risk management process guide
B
Identifying the activity-specific categories to be used for grouping risks
C
Providing guidance on setting risk tolerance thresholds
D
Defining the records to be used

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Correct answerC

Question 16

Single choice

What is the goal of the 'assess - estimate' step?

A
Identify the threats and opportunities facing the organizational activity
B
Estimate and agree the budget required to manage risks to the activity
C
Assess the effectiveness of the risk management processes within an organization
D
Determine the risks with the greatest effect on an activities objectives

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Correct answerD

Question 17

Single choice

Which is provided by the 'M_o_R principles'?

A
Guidance for the design of a risk management approach
B
Design for an organization's corporate governance policy
C
Criteria used to measure the development of risk management
D
Inputs, outputs, tasks and techniques needed to implement risk management

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Correct answerA

Question 18

Single choice

What ensures that an organization's implementation of the M_o_R approach' and 'M_o_R process' undergoes frequent improvement to remain effective?

A
Corporate governance
B
Internal controls
C
Embedding and reviewing
D
Contingency planning

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Correct answerC

Question 19

Single choice

Which document defines how much risk should be taken for a particular activity?

A
Risk management policy
B
Risk management process guide
C
Risk management strategy
D
Risk progress report

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Correct answerC

Question 20

Single choice

Which is needed together with the risk management policy and risk management process guide to form an 'M_o_R approach'?

A
Risk response plan
B
Risk progress report
C
Risk register
D
Risk management strategy

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Correct answerD

Question 21

Single choice

Which is a benefit of effective risk management?

A
Successful completion of all change activities
B
Eliminates risk-taking within an organization
C
Improves the chances of organizational changes being successful
D
Guarantees business benefits will be delivered

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Correct answerC