D373 Marketing in the Digital Era - Set 4 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: What is the primary purpose of enterprise risk management (ERM)?

To eliminate risks

To create value by managing risks across the organization

To reduce profitability

To increase operational costs

Question 2: How does risk-sharing help organizations manage risks?

By transferring risk to a third party, such as an insurance provider

By eliminating the need to manage risks

By increasing the likelihood of risks

By increasing financial performance

Question 3: What is the first step in developing a risk management strategy?

Risk avoidance

Risk identification

Risk financing

Risk elimination

Question 4: What is risk tolerance?

The total amount of risk an organization avoids

The level of risk an organization is willing to accept for a specific initiative

The elimination of all risks

The financial cost of risks

Question 5: Why is risk monitoring important in enterprise risk management?

To eliminate all risks

To continuously evaluate the effectiveness of risk management strategies

To reduce financial performance

To avoid decision-making

Question 6: What role does the chief risk officer (CRO) play in an organization?

To eliminate risks

To oversee and manage the organization’s risk management framework

To increase profits only

To avoid regulatory compliance

Question 7: What is a risk management framework?

A financial tool

A structured approach to identifying, assessing, and managing risks

A method to increase profits

A strategy to avoid risks

Question 8: What is residual risk?

A risk that has been eliminated

The amount of risk remaining after risk mitigation strategies have been applied

A risk that increases financial performance

A risk that avoids identification

Question 9: How can risk awareness be promoted within an organization?

By avoiding all risks

By conducting regular risk training and communication campaigns

By eliminating financial performance

By reducing operational costs

Question 10: What is risk prioritization?

A method to eliminate all risks

A process to rank risks based on their potential impact and likelihood

A financial strategy

A method to avoid decision-making

Question 11: How does scenario analysis support risk management?

By predicting financial gains

By simulating different risk events and evaluating their impact on the organization

By eliminating risks entirely

By reducing operational expenses

Question 12:

Eliminating all risks

Identifying and managing risks that arise from day-to-day business operations

Increasing financial profits

Question 13:

It eliminates all risks

It ensures that critical business functions can continue in the event of a disruption

It focuses only on financial gains

Question 14:

A plan to eliminate risks entirely

A plan to reduce the likelihood or impact of risks

A financial gain strategy

Question 15:

It eliminates all risks

It assigns responsibility for managing specific risks to individuals or teams

It increases financial profits

Question 16:

Ignoring risks

Risk avoidance, risk reduction, risk sharing, and risk acceptance

Increasing financial profits

Question 17:

It eliminates risks

It ensures that all stakeholders are informed about risks and the actions being taken to manage them

It focuses on increasing profits

Question 18:

To avoid managing risks

Because both can significantly impact an organization’s operations and objectives

To eliminate financial performance

Question 19:

To eliminate all risks

To visualize and prioritize risks based on their likelihood and potential impact

To increase financial performance

Question 20:

A risk that eliminates operational risks

A risk that arises from changes in the organization’s strategy or external environment

A risk that focuses on financial gains

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