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Risk Management for Business Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. What does the risk identification process include?

Question 2 2. Which of the following is NOT a purpose of the risk identification process?

Question 3 3. Which risk management step relies on the results of risk identification as inputs?

Question 4 4. Risk identification is an iterative process. How does it impact risk management?

Question 5 5. Where are the outputs of the risk identification process documented?

Page 2

Question 6 6. How is risk related to insurance?

Question 7 7. If a company purchases an insurance policy, which type of risk management approach is it using?

Question 8 8. Zuk company Ltd. decides to launch a brand new type of bicycle called the Zukbike. The company accepts this risk and is prepared to pay for the losses that may occur. Which type of risk management approach is being used by the company?

Question 9 9. Which of the following management decisions involves risk reduction?

Question 10 10. Which of the following is NOT a step in the risk management process?

Page 3

Question 11 11. Annie wants to expand her business operations into a volatile region of the world. What should she do to mitigate risk?

Question 12 12. When an organization purchases insurance, what is the risk mitigation strategy that they are using?

Question 13 13. If the management decides to proceed with a strategy without putting in additional internal controls or finding a way to share the risk, what risk mitigating strategy are they using?

Question 14 14. If the management decides NOT to pursue a course of action because of the potential harm to the organization, what risk mitigation strategy are they using?

Question 15 15. The management may deal with risk by putting in policies and/or internal controls in place that try to limit the exposure to the risk or minimize the impact. What is the risk mitigation technique that the management is using?

Page 4

Question 16 16. Which of the following is a coverage area from COSO's framework?

Question 17 17. What is the control environment?

Question 18 18. What activity shares the financial health of the company, to internal or external stakeholders?

Question 19 19. Which type of division may not be based on physical proximity, but rather based on the type of work they do?

Question 20 20. What does COSO stand for?

Risk Management for Business Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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