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 8)

Questions 36–40

1. 36foundation · easy

   When an organization decides to purchase insurance to cover potential losses from a cyberattack, which risk response strategy are they using?

   • AAvoidance
   • BTransfer
   • CMitigation
   • DAcceptance
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2. 37foundation · easy

   How does risk management contribute to value creation in a digital organization?

   • ABy enabling the organization to take calculated risks that lead to new opportunities and innovation
   • BBy transferring all risks to external parties
   • CBy focusing only on protecting existing assets
   • DBy avoiding all risks, which ensures maximum value
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4. 38foundation · easy

   Which of the following is an example of a quantitative risk assessment technique?

   • AProbability and impact matrix
   • BRisk register
   • CSWOT analysis
   • DMonte Carlo simulation
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5. 39foundation · easy

   What is the correct sequence of steps in the risk management process?

   • AIdentification, assessment, response, review
   • BAssessment, identification, review, response
   • CReview, response, assessment, identification
   • DResponse, assessment, identification, review
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6. 40expert · hard

   A traditional manufacturer is considering a digital transformation to implement IoT sensors in its factories. The transformation could reduce operational costs and improve efficiency, but it also introduces cybersecurity risks and requires significant investment. The company has a limited budget and must choose between investing in the IoT transformation or upgrading its existing IT infrastructure. What should the company do?

   • AEvaluate both options using risk-adjusted cost-benefit analysis to determine which aligns better with the organization's strategy and risk appetite.
   • BInvest in the IoT transformation because the potential cost savings are substantial.
   • CUpgrade the existing IT infrastructure first to reduce cybersecurity risks before introducing IoT.
   • DDo nothing because both options involve risks and the company cannot afford to take risks.
   Reveal Solution Discussion Select an answer first