Business Risk, Exposures and Threats CGEIT Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   In risk evaluation, what does 'likelihood' refer to?

   • AThe potential financial loss if the risk occurs
   • BThe speed at which a risk event impacts the enterprise
   • CThe number of controls in place to mitigate the risk
   • DThe probability that a risk event will occur
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   An enterprise has a business objective to expand into a new international market. Which risk should be prioritized for this objective?

   • ARisk of currency exchange rate fluctuations
   • BRisk of a data breach in the existing data center
   • CRisk of non-compliance with local regulations in the new market
   • DRisk of employee turnover in the headquarters
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A retail chain is expanding into a new country with unstable internet infrastructure. The expansion plan relies heavily on cloud-based point-of-sale (POS) systems. The risk team is identifying risks that could affect the expansion's success. Which risk should be categorized as an operational risk?

   • AA new competitor entering the market with lower prices
   • BIntermittent connectivity to the cloud POS system due to local infrastructure issues
   • CCurrency fluctuation affecting the profitability of the new market
   • DChanges in local labor laws impacting hiring practices
   Reveal Solution Discussion Select an answer first
5. 14expert · hard

   A retail bank is planning to launch a new digital-only banking service. The risk team identifies that the service could be vulnerable to online fraud, which could result in financial losses and reputational damage. The bank's risk appetite for financial loss is low, but it is aggressive for market expansion. The board is considering two options: (1) launch the service with basic security controls, or (2) delay the launch to implement advanced fraud detection. What should the governance team recommend?

   • ALaunch the service with basic security controls but increase the risk appetite for financial loss
   • BLaunch the service with basic security controls to capture market share quickly
   • CDelay the launch to implement advanced fraud detection, because the low appetite for financial loss outweighs the aggressive expansion appetite
   • DLaunch the service with basic security controls and rely on insurance to cover potential losses
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   Why is it important to map risks to specific business objectives?

   • ATo transfer all risks to external parties
   • BTo satisfy regulatory requirements for risk documentation
   • CTo prioritize management efforts on risks that most affect achieving objectives
   • DTo ensure all risks are eliminated before pursuing objectives
   Reveal Solution Discussion Select an answer first