Question 1

What is the purpose of risk management in business?

Accepted Answer

To identify and minimize potential threats that may hinder the achievement of business objectives

Answer

To delegate risks to external parties

Answer

To increase profitability by taking more risks

Answer

To eliminate all risks to ensure smooth operations

Answer

To ignore risks and focus solely on opportunities

Question 2

What is a common technique used in business risk management?

Accepted Answer

Risk assessment

Answer

Risk indulgence

Answer

Risk avoidance

Answer

Risk negligence

Question 3

Which of the following is a key component of effective risk management?

Accepted Answer

Risk mitigation

Answer

Risk neglect

Answer

Risk amplification

Answer

Risk ignorance

Question 4

What is the difference between risk mitigation and risk avoidance?

Accepted Answer

Risk mitigation aims to minimize the impact or likelihood of a risk, while risk avoidance seeks to completely eliminate exposure to the risk.

Answer

Risk mitigation attempts to amplify the impact of a risk, while risk avoidance aims to minimize its impact.

Answer

Risk mitigation involves ignoring and neglecting risks, while risk avoidance involves actively managing and addressing risks.

Answer

Risk mitigation and risk avoidance are the same thing.

Question 5

What is the purpose of a contingency plan in risk management?

Accepted Answer

To provide a predefined course of action in case of an identified risk event

Answer

To eliminate all risks to ensure smooth operations

Answer

To delegate risk management to external consultants

Answer

To celebrate and embrace potential risks

Answer

To ignore and disregard potential risks

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