PeopleCert 108 Exam Practice Test Instant Access

Question 1

What is a 'central risk function'?

AA group with formal responsibility for supporting strategic risk management

BA group that may pose a risk to objectives through its opposition to plans

CA group responsible for approving the funding for risk management

DA group that acts on risks escalated from other perspectives

Answer : A

Question 2

Which is a responsibility of the M_o_R manager role?

ADefine risk tolerance thresholds

BPrepares risk workshop materials

CDefines how much risk should be taken

DEnsures a risk review process is in operation

Answer : D

Question 3

What are the M_o_R principles informed by?

AStatements of internal control

BInternational standard for risk management ISO31000:2009

CPublic Company Accounting and Reform and Investor Protection Act

DBasel Accord (Basel II)

Answer : B

Question 4

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

AIdentify the threats and opportunities facing the organizational activity

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

CAssess the effectiveness of the risk management processes within an organization

DDetermine the risks with the greatest effect on an activities objectives

Answer : D

Question 5

Which is used in the calculation of 'inherent' risk exposure?

ALikelihood of a secondary risk occurring

BEffect on objectives if a risk occurs after completed risk response actions

CProbability of a risk before risk response actions are implemented

DProximity of a risk before risk response actions are implemented

Answer : C

Question 6

What is risk exposure?

AAmount of risk the organization, or subset of it, is willing to accept

BMaximum amount of risk that an organization can bear

CCombined effect of risks to a set of objectives

DSystem by which organizations are directed and controlled

Answer : C

Question 7

Which task will be carried out while performing the 'identify - risks' step?

ACalculating when an identified risk is likely to occur

BRanking the importance of the stakeholders involved in the activity

CEnsuring that all participants agree on the identified risks

DDeveloping an appropriate response to the identified risks

Answer : C

PeopleCert Management of Risk Foundation (MOR) 108 Exam Practice Test