Risk Management SY0-701 Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   A risk manager prepares a summary of the top risks for the executive team to review before making investment decisions. This activity is an example of:

   • ARisk assessment
   • BRisk identification
   • CRisk reporting
   • DRisk mitigation
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   Which of the following is the primary purpose of risk reporting?

   • ATo automatically remediate all identified risks
   • BTo provide stakeholders with information to make informed decisions
   • CTo replace the need for a risk register
   • DTo eliminate the need for risk assessment
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A regional bank is evaluating a new mobile banking feature that will process transactions in near real-time. The bank's risk tolerance for financial loss is very low, but its risk appetite for customer-facing innovation is high. During the risk assessment, the team identifies that the new feature could introduce a 2% increase in fraudulent transaction risk. Which approach best aligns with the bank's stated risk posture?

   • AAccept the risk because the innovation appetite is high and the fraud increase is small.
   • BTransfer the risk by purchasing cyber insurance that covers fraud losses.
   • CAvoid the risk by canceling the mobile banking feature entirely.
   • DMitigate the risk by implementing additional fraud detection controls before launch.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   A risk manager is creating a document that lists identified risks, their likelihood, impact, and planned responses. This document is called a:

   • AVulnerability assessment report
   • BIncident response plan
   • CBusiness impact analysis
   • DRisk register
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A healthcare organization is analyzing the risk of a ransomware attack on its patient records system. The annualized rate of occurrence (ARO) is estimated at 0.2, and the single loss expectancy (SLE) is calculated at $500,000. The organization's risk appetite is moderate, and the board is reviewing the risk analysis to decide on funding for additional backups. What is the annualized loss expectancy (ALE) that should be reported to the board?

   • A$500,000
   • B$2,500,000
   • C$250,000
   • D$100,000
   Reveal Solution Discussion Select an answer first