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 7)

Questions 31–35

1. 31application · medium

   A pharmaceutical company is subject to strict regulatory requirements for data privacy. The company is implementing a new CRM system that will store customer health data. What should the risk management team do to ensure compliance?

   • AAccept the risk of non-compliance because the CRM system is critical to sales.
   • BRely on the legal department to handle all compliance risks.
   • CTreat regulatory compliance as a separate issue from risk management.
   • DIncorporate compliance requirements into the risk assessment and response planning.
   Reveal Solution Discussion Select an answer first
2. 32foundation · easy

   Why is continuous monitoring of risks important in a dynamic digital environment?

   • ABecause new risks can emerge and existing risks can change in likelihood or impact
   • BBecause monitoring is required only for compliance purposes
   • CBecause monitoring eliminates the need for risk assessment
   • DBecause risks are static and do not change over time
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   What is meant by 'risk culture' in an organization?

   • AThe number of risk assessments conducted annually
   • BThe formal risk management process documented in policies
   • CThe risk management software used by the organization
   • DThe set of shared values, beliefs, and behaviors that influence how risks are perceived and handled
   Reveal Solution Discussion Select an answer first
5. 34application · medium

   An e-commerce company has implemented a risk response to mitigate the risk of payment fraud by adding a new fraud detection algorithm. After three months, the fraud rate has not decreased as expected. What should the risk team do?

   • AIncrease the risk appetite to accept the higher fraud rate.
   • BReview the risk response's effectiveness and adjust the algorithm or response as needed.
   • CRemove the risk from the risk register since the response has been implemented.
   • DAssume the algorithm is working and continue monitoring quarterly.
   Reveal Solution Discussion Select an answer first
6. 35foundation · easy

   What is the purpose of a risk register in risk management?

   • ATo automatically eliminate risks
   • BTo replace the need for risk assessments
   • CTo communicate risks only to external stakeholders
   • DTo record and track identified risks, their assessment, and response actions
   Reveal Solution Discussion Select an answer first