True/False Quiz questions

QUESTION 1
Strategic objectives are inclusive of both capital and operating components, which are dealt with in separate operating and capital budget cycles.
TRUE
FALSE
1 points

QUESTION 2
There is a tendency to overestimate risks.
TRUE
FALSE
1 points

QUESTION 3
External execution risks are usually managed with special focus from operating units, while compliance risks are typically addressed by education and controls monitored by specialized staff such as security, information technology, human resources, legal, tax, and audit.
TRUE
FALSE
1 points

QUESTION 4
External risks, are more difficult for operating leaders to evaluate and react to appropriately. There is a natural human tendency to think that tomorrow’s external environment will be like today’s, on better. Operating leaders tend to focus on their own strategies, world views, and day jobs, failing to fully consider external players and uncertain events.
TRUE
FALSE
1 points

QUESTION 5
Risk identification also requires engaging with internal and external thought leaders and experts to think through emerging risks and blind spots to create an information based similiar to a partner at a strategy consulting firm.
TRUE
FALSE
1 points

QUESTION 6
In developing a Risk Scorecard, the fifth of the six steps planning future initiatives and is scored 1 to 5 in relationship to strategic objectives.
TRUE
FALSE
1 points

QUESTION 7
Risk identification identifies names the harm, loss, and compliance violations that an organization should avoid. Risks are identified as an entity, division, functional, unit, or at an alternative level.
TRUE
FALSE
1 points

QUESTION 8
In developing a Risk Scorecard, the second of the six steps link strategic objectives to the mission, which then determines how these objectives contribute to goals, and to its degree.
TRUE
FALSE
1 points

QUESTION 9
In developing a Risk Scorecard, the third of the six steps is the identification of risks to each strategic objective and is scored 1 to 10 in the likelihood category, and 1 to 10 in its impact.
TRUE
FALSE
1 points

QUESTION 10
Policy and process owners realize that they can leverage policies as a means to ensure results. If key risks are addressed in the policy, they will be assessed through control self-assessment (CSA), and deficiencies will be uncovered and resolved by operating managements.
TRUE
FALSE
1 points

QUESTION 11
Global Equities & Derivative Solutions (GEDS) had secondary responsibility for continuously monitoring its trade positions; performing daily analysis of the coherence of risks, earning, and positions.
TRUE
FALSE
1 points

QUESTION 12
The central philosophy of an ERM approach is that the responsibility for risk mitigation and opportunity seizing rests with the operational leaders of the company. No staff can or should address all the varied risks of the company; they lack the awareness, expertise, manpower, and authority.
TRUE
FALSE
1 points

QUESTION 13
A Centralized Compliance Management approach is a model that focuses primarily on regulatory and legal compliance.
TRUE
FALSE
1 points

QUESTION 14
The strength of the pm2 model is its robustness that is obtained from the model’s ability to weighting strategic goals and objectives.
TRUE
FALSE
1 points

QUESTION 15
The central philosophy of an ERM approach is that the responsibility for risk mitigation and opportunity seizing rests with the operational leaders of the company. No staff can or should address all the varied risks of the company; they lack the awareness, expertise, manpower, and authority.
TRUE
FALSE
1 points

QUESTION 16
The Strategic Risk Initiative Results Committee (SRIRC) investigates best practices for an institution’s risk management processes and proposes recommendations regarding the compliance of its structure and framework.
TRUE
FALSE
1 points

QUESTION 17
There is a tendency to overestimate risks.
TRUE
FALSE
1 points

QUESTION 18
Rather than face up to the fact that there is a huge risk and to understand what the consequences are if the risk materializes, it is easy to say it is a high-probability risk, so let us go on because things look great. It may be a low-probability event, but those low-probability events have a way of materializing, and therefore we need to better understand what happens.
TRUE
FALSE
1 points

QUESTION 19
Another pm2 model strength is the system’s ability to differentiate between operating and capital items.
TRUE
FALSE
1 points

QUESTION 20
In developing a Risk Scorecard, the forth of the six steps is the identification of how current programs contribute to achieving a strategic goal and is scored 1 to 5 in relationship to goal and ineffectiveness in meeting expectations.
TRUE
FALSE

Sample Solution

ACED ESSAYS