The Risk Management Process

The first step of the M_o_R risk management process is 'Identify'. It is divided into two activities. What are they?

• A Identify costs and Identify benefits
• B Identify owners and Identify actions
• C Identify threats and Identify auditors
• D Identify the context and Identify the risks ✓

Answer: The Identify step comprises 'Identify the context' (understanding objectives and scope) followed by 'Identify the risks' (finding the threats and opportunities).

What is the main purpose of the 'Identify the context' activity in the M_o_R process?

• A To choose the cheapest risk response
• B To close risks that are no longer relevant
• C To assign monetary values to every risk
• D To understand the objectives, scope and environment so that risk management is properly focused ✓

Answer: 'Identify the context' establishes the objectives, scope, assumptions and environment for the activity, ensuring the rest of the process is relevant and appropriately targeted.

In the M_o_R process, the 'Assess' step is made up of which two activities?

• A Identify and Communicate
• B Estimate and Evaluate ✓
• C Respond and Review
• D Plan and Implement

Answer: The Assess step consists of 'Estimate' (assessing individual risks for probability, impact and proximity) and 'Evaluate' (understanding the combined effect of risks on objectives).

During the 'Estimate' activity of the M_o_R process, which factors are typically assessed for each individual risk?

• A The marketing budget
• B The colour and font of the report
• C Probability, impact and proximity ✓
• D The number of employees available

Answer: Estimate assesses each risk's probability (likelihood), impact (effect on objectives) and proximity (when it might occur), supporting prioritisation.

What does the 'Evaluate' activity within the Assess step of the M_o_R process aim to determine?

• A Whether the project should be cancelled immediately
• B The combined, overall effect of the identified risks on the objectives ✓
• C The names of the people who will own each risk
• D Which supplier offers the lowest price

Answer: Evaluate considers the aggregated effect of all identified risks together, giving an overall view of net exposure against objectives to inform decisions.

In the M_o_R process, which step is where appropriate responses to threats and opportunities are selected and the necessary actions are prepared?

• A Estimate
• B Identify the context
• C Plan ✓
• D Implement

Answer: The Plan step is where suitable risk responses are chosen and the actions, owners and resources required to deliver them are prepared.