ORA RM QUIZ 3 (M5)

Question 1

ISO 31000 considers that _____ is the main heading under which various options exist, such as:

Avoiding the risk by deciding not to start or continue with the activity,

Taking or increasing the risk in order to pursue an opportunity,

Removing the risk source;

Changing the likelihood or the consequences;

Sharing the risk with another party or parties,

Retaining the risk by informed decision.

Answer 1

TREAT RISK

NOTE:
RISK RESPONSES
AVOIDING

TAKING

REMOVING

CHANGING

SHARING

RETAINING

Question 2

_________defines RISK TREATMENT Process of Developing, Selecting, and Implementing Controls

Note: Controls

Answer 2

BS 31100

Question 3

_________defines RISK TREATMENT as development and implementation of measures to modify risk

NOTE: risk

Answer 3

ISO 3100

Question 4

4 Ts of Hazard Risks

Answer 4

Tolerate
Treat
Transfer
Terminate

Question 5

4 Ts of Hazard Risks

The exposure may be _____ without any further action being taken. Even if it is not, the ability to do anything about some risks may be limited, or the cost of taking any action may be disproportionate to the potential benefit gained.

Answer 5

tolerable

Question 6

4 Ts of Hazard Risks

For some risks the best response may be to ______ them. This might be done by conventional insurance, or it might be done by paying a third party to take the risk in another way. This option is particularly good for mitigating financial risks or risks to assets.

Answer 6

transfer

Question 7

4 Ts of Hazard Risks

By far the greater number of risks are addressed this way. The purpose of ______ whilst continuing within the organization with the activity giving rise to the risk, action (control) is taken to constrain the risk to an acceptable level.

Answer 7

TREAT

Question 8

4 Ts of Hazard Risks

to reduce likelihood

Answer 8

Treat

Question 9

risk tolerance defined by ______ as the orgs readiness to BEAR the risk after risk treatment in order to achieve its objective

Answer 9

guide 75

Question 10

______ can be influ by legal or regul reqs

Answer 10

risk toler

Question 11

t o f

tolr risk is norm concerned with org being willing to retain or tolr a risk, even if its higher than the org would choose to accept

Answer 11

t

Question 12

____ is a RM strat to offset losses in investments by taking an ______ position in a related asset. the reduction in risk provided by it also typically results in a ______ in potential profits

Answer 12

Hedging

OPposite

reduction

Question 12

_____ often be undertaken with the risk at the inherent and/or current level, so that when the risk has been treated, the new current level or target level may become tolerable.

Answer 12

Risk treatment

Question 13

Insurance is estb. mech for _______ the financial impact of losses arising from hazard risks and to control risks

Answer 13

transferring

Question 14

2 were considered to be risk transfer and treatment options

Answer 14

R. hedging and Neutralization

Question 15

the cost of risk transfer is a component of ____

Answer 15

risk financing

Question 15

___ of risk is done by stopping the process or activity

Answer 15

elim

Question 15

_____ involves cost of contingent arrangements for the provision of funds to meet the financial impat of risk materializing.

Answer 15

risk financing

Question 16

___ overall approach to the mgmt of CONTROL and OPPT. risks is similar to the approach adopted for the management of hazard risks

Answer 16

Project and Strategic Risk Response

Question 17

4 RISK CONTROL TECHNIQUES

limit the possibility

Answer 17

preventive

strongest control

Question 17

4 RISK CONTROL TECHNIQUES ARE

Answer 17

DIRECT
DETECT
CORRECT
PREVENT

…IVE

Question 17

4 RISK CONTROL TECHNIQUES

limit the scope for loss and reduce any bad outcomes

Answer 17

corrective

Question 18

4 RISK CONTROL TECHNIQUES

outcome is achieve

Answer 18

directive

Question 19

4 RISK CONTROL TECHNIQUES

identify occasiosn of bad outcomes

Answer 19

detective

weakest control

Question 20

the pooling of fortuitous losses by transfer of such risks to unsurers who agree to indemnify insureds for such losses, to provide other pecuniary benefit on their occurnce m or to render services connected with the risk

Answer 20

insurance

Question 21

the 6C's of Insurance Buying are

Answer 21

Cost Coverage Capacities Capabilities Claim Compliance

Question 22

the 6C's of Insurance Buying defined by the insurance prem that is REQ from the org and the level of self insurance that is imposed by the policy

Answer 22

cost

Question 23

the 6C's of Insurance Buying amount of risk covered for an indiv or entity by way of insurance servis

Answer 23

coverage

Question 24

the 6C's of Insurance Buying largest amount of insura or reinsurance available from company in gen. determ by financ strength and refer to adtl amount of business that a company or total market could write on excess captial that is surplus capacity

Answer 24

capacity

Question 25

the 6C's of Insurance Buying used in ref to insurance. may be a demand by indiv to recover under policy

Answer 25

claim

Question 25

the 6C's of Insurance Buying other services offered in addition to insurance

Answer 25

capabilities

Question 26

the 6C's of Insurance Buying ___ of insura policy to the laws of the country pertaining to insurance such as taxes

Answer 26

compliance

Question 27

______ how orgs prepares for future incidents that could jeopardize its existence

Answer 27

BCP Business continuity planning

Question 28

BS31100:2011 defines ____ as a holistic mgmt process that identifies potential threats to an org and the impacts to business ops that those threats might cause and which provides a framework for building org resilience .... Safeguard interests of its key _____, ___ , ___, _____

Answer 28

BCP stakeholders, reput, brand, value creating actvities

Question 28

6 successful bcp principles

Answer 28

CCPEMP comprehensive cost-effective practical effective maintained practised

Question 28

_______ a particular component of BCP and involves a set of policies tools and procedures to RECOVER

Answer 28

DRP DISAST RECOV PLAN

Question 29

BCP MAJOR COMPONENTS

Answer 29

--- Activate crisis mgmt plant --- seek to recover from the event through DRP --- issue of BCP

Question 29

5 steps to BC standards BS 25999 pt1 Code of Practice

Answer 29

--- Und. busin Context -- BCM sttrategies --- develop a response --- est. cont. culture --- apply and plan maintenance

Question 30

______ helps put business contuinutiy plans in place to protect them

Answer 30

ISO 22301