Part 7: Risk Management

Question 1

Risk identification is the process of identifying hazard and sources of risks. When an organization is determining possible risks they:

A) should include only risks that they have control over
B) should include only those risks that are obvious and currently known
C) should include all possible risks, using many risk identification tools
D) should only come up with a list of no more than 3-5 risks or hazards.

Answer 1

C) should include all possible risks, using many risk identification tools

Question 2

The key stakeholders, strategy, and program objectives, as well as development of roles and responsibilities, are typically identified and agreed on in the:

A) risk management planning
B) risk identification phase
C) risk prioritization phase
D) risk assessment

Answer 2

A) risk management planning

Question 3

In a risk analysis, the likelihood and consequences of risk are combined to determine the risk level for a particular risk. The purpose of risk evaluation is to:

A) make decisions based on risk level compared to stated risk criteria
B) determine options for modifying risks
C) decide whether risk levels are acceptable
D) evaluate and possibly change the consequences

Answer 3

A) make decisions based on risk level compared to stated risk criteria

Question 4

A risk mitigation plan can be used to:

A) eliminate risk
B) minimize risk
C) accept the risk as is
D) all of the above

Answer 4

D) all of the above

Question 5

If the response to a particular risk is to attempt to minimize its impact this is known as:

A) avoidance
B) transfer
C) mitigation
D) denial

Answer 5

C) mitigation

Question 6

Results of risk evaluation must be:

A) quantitative only
B) qualitative only
C) subjective
D) qualitative or quantitative

Answer 6

D) qualitative or quantitative

Question 7

The process of comparing the results of a risk analysis that has been completed to the stated risk criteria put in place is:

A) risk reduction
B) risk identification
C) risk evaluation
D) None of the above

Answer 7

C) risk evaluation

Question 8

Risk assessment consists of the following

A) risk identification, analysis, and control
B) risk identification, analysis, and evaluation
C) risk identification, reduction, and evaluation
D) risk reduction, risk criteria, and evaluation

Answer 8

B) risk identification, analysis, and evaluation

Question 9

A risk assessment tool that is based on expert opinion is the:

A) checklist
B) Delphi method
C) flowchart
D) FMEA

Answer 9

B) Delphi method

Question 10

A failure mode and effects analysis (FMEA) is a useful tool for prioritizing risks. One of the drawbacks or limitations of the FMEA is that:

A) it can not be used to identify combinations of failure modes, only single failure modes.
B) it does not aid in identifying possible root causes.
C) it is too complicated since it does not require the user to know anything about he process or product
D) None of the above

Answer 10

A) it can not be used to identify combinations of failure modes, only single failure modes.

Question 11

Two components of risk estimation are:

A) severity and consequence
B) probability of occurrence and severity
C) probability of occurrence and risk
D) None of the above

Answer 11

B) probability of occurrence and severity

Question 12

Qualitative evaluation involves categories such as catastrophic, critical, major, minor, and negligible, which represent:

A) probabilities of reoccurrence
B) likelihood of occurrence
C) severity
D) risk priority number

Answer 12

C) severity

Question 13

Consider the following empty table (Probability X Severity)

                           Probability Severity      Low        Medium           High Low Medium  High

This table is an example of a(n):

A) flowchart
B) FMEA
C) Severity categorization matrix
D) risk matrix

Answer 13

D) risk matrix

Question 14

The numerical metric that is an output from an FMEA is the:

A) risk priority number
B) significance level
C) capability index
D) supplier index

Answer 14

A) risk priority number

Question 15

Which of the following risk assessment tools is a top-down approach to failure mode analysis?

A) FMEA
B) FMECA
C) FTA
D) None of the above

Answer 15

C) FTA

Question 16

Which of the following is true about hazard and operability (HAZOP) analysis?

A) It uses “guide words”
B) It is based on the assumption that risks are caused by deviations from the design plans
C) It can be applied to a wide range of processes, products, and services
D) All of the above

Answer 16

D) All of the above

Question 17

The purpose of risk control is to:

A) Completely eliminate risk
B) Completely eliminate all failures
C) Maintain risk at or below an acceptable level.
D) None of the above

Answer 17

C) Maintain risk at or below an acceptable level.

Question 18

Risk control requires documentation that addresses monitoring and review of risks and controls put in place. Which of the following would not be part of monitoring and review?

A) Identifying new or upcoming risks
B) Obtaining new information to update risk levels and risk criteria
C) Assess the controls in place to make sure they are working and appropriate
D) All of the above

Answer 18

D) All of the above

Question 19

A gap may exist when controlling risks if:

A) There are controls in place to address significant risks
B) there is more than one control in place to address a significant risk
C) there is no control in place to address a significant risk or the control is insufficient for that particular risk
D) All of the above

Answer 19

C) there is no control in place to address a significant risk or the control is insufficient for that particular risk

Question 20

What activity is performed to verify that known risks are being controlled and that risk treatment plans in place are effective?

A) Risk reduction
B) Risk audit
C) Risk control
D) Risk reporting

Answer 20

B) Risk audit

Question 21

Residual risk is:

A) risk that remains after a risk treatment ahs been implemented.
B) risk due to a gap between what is believed to be risk and what really is risk.
C) unknown risk that can never be identified
D) None of the above

Answer 21

A) risk that remains after a risk treatment ahs been implemented.

Question 22

Risk reduction and risk acceptance are the two components of:

A) risk control
B) risk audit
C) residual risk
D) risk reporting

Answer 22

A) risk control

Question 23

Controls and risks should be monitored to determine whether:

A) risk assessment techniques are being appropriately implemented
B) expected results of the risk management process are being maintained
C) risk treatments in place are still effective
D) All of the above

Answer 23

D) All of the above