Question 1

Risk management takes human and cultural factors into account.

Options :

A : True

B : False

Answer: A

Question 2

How does a pure risk differ from a speculative risk?

Options :

A : A pure risk always has an environmental cause whereas a speculative risk always involves human error.

B : A pure risk can be measured in probability terms whereas a speculative risk cannot.

C : A pure risk is not subject to regulatory control but a speculative risk always is.

D : A pure risk only leads to the possibility of a loss, whereas a speculative risk may lead to a gain.

Answer: D

Question 3

Using the FIRM scorecard which of the following risks could a risk manager quantify? 1. Loss of income. 2. Financial gain. 3. Reputational damage.

Options :

A : 1 and 2.

B : 1 and 3.

C : 2 and 3.

Answer: A

Question 4

ISO uses the concept of uncertainty as the driver and rationale for risk management.

Options :

A : True

B : False

Answer: A

Question 5

Which risk identification involves creating alternative ways to achieve an objective?

Options :

A : Scenario Based

B : Objectives-Based

Answer: A

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