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EXIN Management of Risk Foundation Sample Questions:

1. Which is NOT a use of the 'horizon scanning' technique?

A) Facilitating the identification of changes that may affect the organization's risk exposure
B) Conducting a wide scan of the current external environment
C) Identifying long-term developments that could affect the organization's objectives
D) Assessing how emerging trends could affect the organization's objectives

2. What is a threat?

A) An uncertain event that could have a favourable impact on objectives
B) An event that has occurred resulting in a favourable impact on objectives
C) An uncertain event that could have a negative impact on objectives
D) An event that has occurred resulting in a negative impact on objectives

3. Which describes the 'reduce a threat' risk response option?

A) Remove the cause of the threat
B) Partake in a pain/gain contract with another party for the specified risk
C) Obtain an insurance policy to cover the impact should the risk occur
D) Perform an action to minimise the impact and/or probability of the risk

4. Which statement describes the'avoid a threat' risk response option?

A) Remove the cause of the threat
B) Partake in a pain/gain contract with another party for the specified risk
C) Obtain an insurance policy to cover the impact should the risk occur
D) Perform an action to minimise the impact of the risk should it occur

5. What is risk exposure?

A) Amount of risk the organization, or subset of it, is willing to accept
B) System by which organizations are directed and controlled
C) Maximum amount of risk that an organization can bear
D) Combined effect of risks to a set of objectives

Solutions: