Risk Management Strategies and Compliance Mechanisms in Blockchain BBLC Practice Questions (Page 10)

Questions 46–48

1. 46foundation · easy

   In a risk assessment framework, a risk with high likelihood and low impact would typically be prioritized as:

   • ALow priority because the impact is minimal
   • BMedium priority, requiring monitoring and cost-effective controls
   • CNo priority because it is unlikely to cause significant damage
   • DHigh priority because it is likely to occur frequently
   Reveal Solution Discussion Select an answer first
2. 47application · medium

   A healthcare consortium is evaluating a blockchain for sharing patient consent records across hospitals. The risk team has identified two key risks: (1) a data breach exposing protected health information, and (2) a smart contract bug that incorrectly revokes consent. Using a likelihood-impact matrix, which risk should be treated first?

   • ANeither, because blockchain is inherently secure and eliminates both risks
   • BThe smart contract bug, because it has high likelihood and high impact on patient safety and trust
   • CThe data breach, because it has high impact but low likelihood due to encryption
   • DBoth equally, because any risk to patient data is unacceptable
   Reveal Solution Discussion Select an answer first
3. 48expert · hard

   A decentralized finance (DeFi) protocol has suffered a major exploit, losing user funds. The team must decide on a mitigation strategy. They have three options: (1) implement a bug bounty program, (2) purchase insurance, (3) conduct a full security audit. Which combination of strategies is most effective for long-term risk reduction?

   • AOnly purchase insurance because it is the fastest way to reimburse users
   • BPurchase insurance and conduct a full security audit
   • CConduct a full security audit and implement a bug bounty program
   • DImplement a bug bounty program and purchase insurance
   Reveal Solution Discussion Select an answer first