Section III: Risk Environment

Question 1

What does SWOT stand for?

Answer 1

S - Strengths (internal factor)
W - Weaknesses (internal factor)
O - Opportunities (external factor)
T - Threats (external factor)

Question 2

What are the four Internal Environments of Risk?

Answer 2

• Cognitive
• Operations
• Product
• Technology

Question 3

What are the four External Environments of Risk?

Answer 3

• Economic
• Legal
• Physical
• Social

Question 4

What is the difference between an Internal and External Stakeholder?

Answer 4

An Internal Stakeholder is directly involved with a company (employees), and an External Stakeholder is not directly involved but affected by the actions of the company (consumers, suppliers, etc.).

Question 5

What is a Risk Center?

Answer 5

A division or “sub-unit” of an organization responsible for handling specific risks.

Question 6

What are the three advantages creating Risk Centers offer?

Answer 6

• Appropriate Risk Level
• Management Involvement
• Meet Goals

Question 7

What are Risk Owners responsible for?

Answer 7

Handling the risks at their risk center. They must identify, monitor and assess risks, and when necessary, respond to those risks.

Question 8

Why are Risk Owner Interviews conducted?

Answer 8

To help identify which risks pose the greatest threats to organizational resources.

Question 9

What topics should be covered in a Risk Owner Interview?

Answer 9

• Equipment
• Information
• Materials
• Staff
• Workspace

Question 10

What is the difference between Corporate and Organizational Culture?

Answer 10

Corporate Culture refers to businesses, while Organizational Culture might refer to a non-profit firm.

Question 11

What are the four main types of Corporate Culture?

Answer 11

• Adhocracy Cultures (adaptability is key)
• Clan Cultures (functions like a family)
• Hierarchical Cultures (authority is well defined)
• Market Cultures (profit is the top priority, focus on external relationships)

Question 12

What are the three main attitudes towards Risk?

Answer 12

• Risk-avoiding
• Risk-optimizing
• Risk-seeking

Question 13

What are the three main management styles?

Answer 13

• Directive (fits with Hierarchical Culture)
• Delegating
• Supportive

Question 14

What are the 7 characteristics of Effective Communication??

Answer 14

• Feedback
• Familiar Ideas
• Repeat for Clarity
• Simple
• Understand the Audience
• Understand the Purpose
• Common Language

Question 15

What are the two systemic qualities of Effective Communication?

Answer 15

• Plan for Crises
• Fictional Communication

Question 16

What are the three types of communications you can use with Stakeholders?

Answer 16

• Nonverbal communication (body language, standing distance)
• Verbal communication (conversations either single or in a group setting)
• Written communication (direct message, email, letter, report)