Skip to main content

EX0-004 Online Practice Questions

Management of Risk Foundation

140 questions available · Page 1 of 14

Updated Exam DumpsVerified AnswersPass Guarantee

Get Complete Exam Dumps
Question 1 Single choice

What is defined as the level of risk exposure that, once exceeded, will trigger an escalation?

  1. A

    Risk appetite

  2. B

    Risk capacity

  3. C

    Risk tolerance

  4. D

    Risk perception

Show answer and explanation

Correct answer: C

Question 2 Single choice

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

  1. A

    Informs decision-making

  2. B

    Facilitates continual improvement

  3. C

    Creates a supportive culture

  4. D

    Achieves measurable value

Show answer and explanation

Correct answer: C

Question 3 Single choice

Who does a 'risk actionee' keep up to date on progress when implementing a response to a risk?

  1. A

    Senior team

  2. B

    Audit committee

  3. C

    Risk owner

  4. D

    Team

Show answer and explanation

Correct answer: C

Question 4 Single choice

Identify the missing word in the following sentence. Applying the 'aligns with objectives' principle at the [ ? ] perspective ensures risk management is responsive to changes to objectives that meet shareholder needs, reputation and demand for services.

  1. A

    operational

  2. B

    project

  3. C

    programme

  4. D

    strategic

Show answer and explanation

Correct answer: D

Question 5 Single choice

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

  1. A

    engages stakeholders

  2. B

    provides clear guidance

  3. C

    creates a supportive culture

  4. D

    facilitates continual improvement

Show answer and explanation

Correct answer: A

Question 6 Single choice

Which is a benefit of effective risk management?

  1. A

    Activity plans are agreed before the activity commences

  2. B

    Staff members are better prepared to respond to incidents

  3. C

    Removes the organization's need to take risks

  4. D

    Guarantees business benefits will be delivered

Show answer and explanation

Correct answer: B

Question 7 Single choice

Which technique can be used to clarify potential sources of risks across an activity?

  1. A

    Probabilistic risk models

  2. B

    Summary risk profiles

  3. C

    Risk breakdown structure

  4. D

    Decision trees

Show answer and explanation

Correct answer: C

Question 8 Single choice

Which sub-steps are included in the 'assess' step?

  1. A

    Plan and evaluate

  2. B

    Estimate and evaluate

  3. C

    Context and risks

  4. D

    Context and estimate

Show answer and explanation

Correct answer: B

Question 9 Single choice

Which task will be carried out while performing the 'identify - risks' step?

  1. A

    Calculating when an identified risk is likely to occur

  2. B

    Ranking the importance of the stakeholders involved in the activity

  3. C

    Ensuring that all participants agree on the identified risks

  4. D

    Developing an appropriate response to the identified risks

Show answer and explanation

Correct answer: C

Question 10 Single choice

What is the difference between a risk and an issue?

  1. A

    An issue has a short time-scale proximity and risk has medium-or long-term proximity

  2. B

    An issue impacts on quality, a risk impacts on benefits

  3. C

    An Issue is a risk that has occurred, a risk is yet to occur

  4. D

    A risk can impact on all activities, an issue impacts on project deliverables only

Show answer and explanation

Correct answer: C