Question

13. Who has responsibility for risk acceptance?

1. board
2. operations managers
3. chief risk officer
4. chief executive officer

      The correct answer is

14. Which of the following is done FIRST in operational risk management?

1. Identification of controls
2. Identification of risks
3. Determination of cost effectiveness of controls
4. Stress testing

      The correct answer is ___

15. Which of the following would have the HIGHEST priority in a business continuity plan?

A. Resuming critical processes

B. Recovering sensitive processes

C. Restoring the site

D. Relocating operations to an alternative site

The correct answer is __

16. Which of the following statement is INCORRECT in operational risk management?

1. Each control must have a control objective
2. Preventive controls are the strongest controls
3. Cost of controls should be more than the risk being mitigated
4. A single control can mitigate many risks

The correct answer is ___

Answer 1

13

Chief risk officer

Chief risk officers often assess the risk and takes the responsibility for risks that are not mitigated.

14

Identification of risks

The first step of any risk management process is to identify the risks. Then we identify the controls and check if the controls can handle the risks.

15

Resuming critical processes

In business continuity plan we need to make sure that the cyclical nature of the business continues. As a result, it is important to make sure that critical process for the business can resume.

16

Cost of controls should be more than the risk being mitigated

If the risk is not very expensive then there is no point in creating a control that is more expensive than the risk.