In the Context of Digital and IT Strategy, Explain How To ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   Which risk analysis method uses a matrix to plot the likelihood of a risk against its impact to determine its overall level?

   • AMonte Carlo simulation
   • BSWOT analysis
   • CScenario analysis
   • DProbability-impact matrix
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2. 22foundation · easy

   What is the primary purpose of risk evaluation in the risk management process?

   • ATo identify all potential risks that could affect the strategy
   • BTo compare the level of risk against the organization's risk appetite and tolerance
   • CTo determine the likelihood and impact of each risk
   • DTo implement risk responses and monitor their effectiveness
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4. 23foundation · easy

   A risk that could result in a significant drop in customer trust and negative media coverage is best classified as which type of risk?

   • AReputational risk
   • BFinancial risk
   • COperational risk
   • DStrategic risk
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5. 24expert · hard

   A financial institution is evaluating risks for a new online trading platform. The risk of a security breach has a low likelihood but very high impact, while the risk of a minor user interface error has a high likelihood but low impact. The institution has a very low risk appetite for security breaches. How should these risks be prioritized?

   • AAccept the security breach risk because of its low likelihood
   • BTreat both risks equally because they have opposite likelihood and impact profiles
   • CPrioritize the user interface error risk because of its high likelihood
   • DPrioritize the security breach risk because of its high impact and low risk appetite
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6. 25foundation · easy

   An organization is planning to migrate its core IT systems to a public cloud provider. Which of the following is a compliance risk that should be identified?

   • AThe cloud provider's services may not integrate well with existing on-premises applications.
   • BThe organization may not be able to demonstrate compliance with industry regulations if audit logs are not retained as required.
   • CKey IT staff may leave the organization during the migration, causing knowledge loss.
   • DThe migration may exceed the planned budget due to unexpected data transfer costs.
   Reveal Solution Discussion Select an answer first