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Exin MORF Management of Risk Foundation Exam Practice Test

Demo: 21 questions
Total 140 questions

Management of Risk Foundation Questions and Answers

Question 1

What objectives are associated with decisions about risks to the delivery of business change capabilities?

Options:

A.

Strategic

B.

Enterprise

C.

Programme

D.

Operational

Question 2

Identify the missing word in the following sentence. Applying the 'aligns with objectives' principle at the [ ? ] perspective ensures risk management is responsive to changes to objectives that meet shareholder needs, reputation and demand for services.

Options:

A.

operational

B.

project

C.

programme

D.

strategic

Question 3

What is the goal of the 'assess - estimate' step?

Options:

A.

Identify the threats and opportunities facing the organizational activity

B.

Estimate and agree the budget required to manage risks to the activity

C.

Assess the effectiveness of the risk management processes within an organization

D.

Determine the risks with the greatest effect on an activities objectives

Question 4

Which technique can be used to clarify potential sources of risks across an activity?

Options:

A.

Probabilistic risk models

B.

Summary risk profiles

C.

Risk breakdown structure

D.

Decision trees

Question 5

Which action is NOT needed in order for risk management to be effective?

Options:

A.

Identify the risk

B.

Eliminate the risk

C.

Assess the risk

D.

Control the risk

Question 6

What M_o_R principle recommends the sharing of experiences across the organization to help senior management decision making?

Options:

A.

Informs decision making

B.

Facilitates continual improvement

C.

Achieves measurable value

D.

Provides clear guidance

Question 7

Which is a goal of the 'assess - evaluate' step?

Options:

A.

Evaluate the impact, probability and how soon risks might occur

B.

Calculate the net effect of risks facing the activity

C.

Assess and evaluate the effectiveness of procedures for managing risks

D.

Evaluate the net cost of planned risk responses

Question 8

Which describes the risk response option 'share the risk'?

Options:

A.

Perform an action to minimise the impact of the risk should it occur

B.

Carry out an action to make the uncertain situation certain

C.

Obtain an insurance policy to cover the impact should the risk occur

D.

Partake in a pain/gain contract with another party for the specified risk

Question 9

What may be recorded in the risk register during the 'identify - risks' step?

Options:

A.

The probability and impact of an identified risk

B.

An action required to mitigate an identified risk

C.

A risk description expressed as a cause, event and effect

D.

The risk actionee for an identified risk response

Question 10

Identify the missing word in the following sentence. The impact of risks to organizational goals at the [ ? ] perspective may only become noticeable far into the future.

Options:

A.

strategic

B.

programme

C.

project

D.

operational

Question 11

Which is an M_o_R principle?

Options:

A.

Supports organizational performance

B.

Achieves measurable value

C.

Changes the culture of risk management

D.

Embedding and reviewing

Question 12

Which is NOT a reason for carrying out an ‘M_o_R health check?

Options:

A.

Identify areas for improvement

B.

Help gain maximum value from investment in risk management

C.

Provide a snapshot of the current status of identified risks

D.

Review how well risk management practices have been embedded

Question 13

What objectives are associated with decisions on risks to the achievement of long-term goals?

Options:

A.

Strategic

B.

Programme

C.

Project

D.

Operational

Question 14

Identify the missing words in the following sentence.

The [ ? ] technique is used to measure the net effect of the threats and opportunities facing an activity.

Options:

A.

cost-benefit analysis

B.

summary expected value assessment

C.

summary risk profile

D.

impact assessment

Question 15

What is the purpose of using an M_o_R'health check'?

Options:

A.

Understand the nature of risks facing an organization and the actions needed to respond

B.

Provide alternative assurance and approval processes at key decision points within a programme

C.

Examine an organization's current risk management practices to identify areas for improvement

D.

Show which organizational activities that risk management should be applied to

Question 16

Which M_o_R principle advocates that an organization's risk appetite should be within the organization's risk capacity?

Options:

A.

Aligns with objectives

B.

Fits the context

C.

Informs decision-making

D.

Provides clear guidance

Question 17

What ensures that an organization's implementation of the M_o_R approach' and 'M_o_R process' undergoes frequent improvement to remain effective?

Options:

A.

Corporate governance

B.

Internal controls

C.

Embedding and reviewing

D.

Contingency planning

Question 18

Which is a purpose for an ‘M_o_R health check’?

Options:

A.

Review how well risk management practices have been embedded

B.

Examine future developments that may affect an organization's level of exposure to risk

C.

Provide a snapshot of the current status of identified risks

D.

Identify individuals or groups of individuals that have an interest in an organizations planned activity

Question 19

Which action does NOT contribute to achieving the goal of the 'identify - risks' step?

Options:

A.

Describe risks faced by the organization that may prevent an activity from succeeding

B.

Define an activity's key performance indicators

C.

Obtain information about the external and internal factors that may affect the planned activity

D.

Understand a stakeholder's view of an activity's risk profile

Question 20

Which describes 'residual' risk exposure?

Options:

A.

Probability of a secondary risk occurring

B.

Effect on objectives if a risk occurs after implementing risk response actions

C.

Chance of a risk occurring before risk response actions commence

D.

Proximity of a risk before risk response actions are completed

Question 21

Which is recorded in the 'risk register'?

Options:

A.

Events that have already occurred

B.

Organizational risk appetite and capacity

C.

Risk management practices within an organization

D.

Threats and opportunities

Demo: 21 questions
Total 140 questions