Risk Management Principles
32 practice questions with explanations — 15 free to try
PassNova has 32 M_o_R Foundation practice questions on Risk Management Principles, each with a clear explanation. A 15-question taster is free with no sign-up; the full bank is part of PassNova Premium. Updated for 2026.
Risk Management Principles: example questions & answers
3 worked examples with answers and explanations below. Try 15 M_o_R Foundation questions free in the browser; the full 32-question Risk Management Principles bank is part of PassNova Premium.
In Management of Risk (M_o_R), which of the following best defines a 'risk'?
- AAn event that has already caused harm to the organisation
- BAn uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives✓
- CA definite future cost that must be budgeted for
- DA weakness in a control that auditors have identified
Answer: M_o_R defines risk as an uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives. The uncertainty and link to objectives are central to the definition.
M_o_R recognises that risk has two types of effect on objectives. What are they?
- AStrategic and operational
- BThreats and opportunities✓
- CInternal and external
- DFinancial and reputational
Answer: M_o_R treats risk as having both a downside (threats) and an upside (opportunities). Effective risk management seeks to minimise threats and maximise opportunities.
How many principles underpin the M_o_R framework?
- AEight✓
- BTwelve
- CFive
- DSeven
Answer: M_o_R is built on eight principles that inform and support all other elements of the framework. They are derived from corporate governance principles.