Question

An event which impacts an organization and whose impact materializes immediately is called a:

		Short-term risk
		Medium-term risk
		Long-term risk
		Intolerable risk

A Risk Map graphically describes risks by their:

		Magnitude and Tolerability
		Likelihood and Tolerability
		Magnitude and Likelihood
		Risk and Reward

The management strategy for a Pure Risk is generally to:

		Mitigate it
		Manage it
		Avoid it
		Embrace it

Which of the following is a benefit of Enterprise Risk Management?

		More efficient operations
		More effective processes
		More efficacious strategy
		All of the above

Answer 1

Question: An event which impacts an organization and whose impact materializes immediately is called a:
Ans. short term risk
The consequences of short term risk are more immediate and its impact materializes more immediately than any other risks.
Question: A Risk Map graphically describes risks by their:
Ans. Likelihood and Tolerability
Risk mapping is a graphical risk assessment process that interprets the likelihood and tolerability of the risks for any organization. The likelihood is plotted on the x axis and the tolerability is plotted on the y axis.
The management strategy for a Pure Risk is generally to:
Ans. Avoid it
Pure risk is destructive and if it occurs then organization may lose its functional aspects. Thus it is essential to take strategies to avoid pure risk.
Which of the following is a benefit of Enterprise Risk Management?
Ans. All of the above
Enterprise risk management or ERM provides several benefits. It provides effective coordination, and efficient resource use in operation. It also provides efficacious strategies to the organization to deal with the risks.