Explain the Concept of Risk Management in the Context of a Digital Organization (11.1, 11.2, 11.3 Including Subsections for All, Risk Management Practice 2.1 & 2.4 Including All Subsections) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which of the following is a component of a risk management framework?

   • ARisk management policy
   • BRisk register
   • CRisk appetite statement
   • DGovernance structure
   Reveal Solution Discussion Select an answer first
2. 7application · medium

   A telecommunications company is deciding whether to invest in a new 5G infrastructure. The risk team has provided a risk analysis showing that the potential financial loss from a security breach is significant, but the probability is low. How should the leadership use this information in their decision?

   • ADecide based solely on the probability, without considering the impact.
   • BUse the risk information to weigh the potential loss against the expected benefits of the investment.
   • CIgnore the risk because the probability is low.
   • DProceed with the investment without considering the risk because it is unlikely to occur.
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   During which step of the risk management process are risks prioritized based on their likelihood and impact?

   • ARisk review
   • BRisk assessment
   • CRisk identification
   • DRisk response
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   What is the purpose of reviewing risks on a regular basis?

   • ATo assign blame for any risks that have materialized
   • BTo ensure that risk responses remain effective and relevant
   • CTo eliminate the need for risk identification in the future
   • DTo document risks for historical purposes only
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A traditional retailer is considering a digital transformation to offer an online shopping experience. The CEO is concerned about the risks, but the marketing director highlights the potential for increased market reach. What should the leadership team do to make a balanced decision?

   • AAbandon the transformation because the risks are too high.
   • BProceed with the transformation because the potential market reach is significant.
   • CEvaluate both the opportunities and risks to determine if the transformation aligns with the organization's risk appetite.
   • DFocus on the risks and develop a risk register, but do not consider opportunities.
   Reveal Solution Discussion Select an answer first