Enterprise Risk Management CGEIT Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which of the following is a key characteristic of effective risk reporting to stakeholders?

   • AIt is distributed only to the board of directors.
   • BIt is generated only when a risk materializes.
   • CIt includes every risk identified in the enterprise, regardless of significance.
   • DIt is tailored to the needs of the audience and provides actionable information.
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   Which of the following is an example of a compliance risk that should be identified during IT risk identification?

   • AThe risk of failing to meet regulatory requirements for data protection.
   • BThe risk of a hardware failure causing system downtime.
   • CThe risk of a cyberattack causing a data breach.
   • DThe risk of losing market share to a competitor.
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   Which risk response strategy is being applied when an organization decides to discontinue a high-risk IT project?

   • AAvoid
   • BTransfer
   • CAccept
   • DMitigate
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   Which of the following best illustrates the integration of ERM with performance management?

   • AFocusing risk management solely on compliance requirements.
   • BUsing risk-adjusted performance metrics to evaluate business units and projects.
   • CReporting risk information only to the audit committee.
   • DEliminating all risks to achieve perfect performance.
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   An organization decides to purchase cyber insurance to cover potential losses from a data breach. Which risk response strategy is this?

   • AAvoid
   • BMitigate
   • CTransfer
   • DAccept
   Reveal Solution Discussion Select an answer first