Know How to Explain the Concept of Risk Posture and Show How to Determine an Acceptable Balance Between Opportunity and Risk (11.10, 11.11, 11.12 Including Subsections for All) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which of the following is a key component that shapes an organization's risk posture?

   • ARisk treatment plan
   • BRisk appetite
   • CRisk assessment matrix
   • DRisk register
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2. 7foundation · easy

   Which component of risk posture refers to the maximum amount of risk an organization can absorb without threatening its viability?

   • ARisk appetite
   • BRisk tolerance
   • CRisk threshold
   • DRisk capacity
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4. 8foundation · easy

   Why is understanding the organization's risk posture important when developing a digital and IT strategy?

   • AIt allows the organization to avoid all regulatory compliance requirements
   • BIt guarantees that all risks are eliminated before any new initiative is approved
   • CIt ensures that the strategy is aligned with the organization's willingness to take risks in pursuit of its objectives
   • DIt provides a complete list of all potential IT risks that must be reported to stakeholders
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5. 9expert · hard

   A financial services firm is deciding whether to adopt a new AI-based fraud detection system. The system promises to reduce fraud losses by 30%, but it has a 2% false-positive rate that could annoy legitimate customers. The firm's risk appetite statement says it is 'willing to accept moderate operational risk to achieve significant efficiency gains.' The head of customer experience is concerned about the false positives, while the CFO is focused on the fraud savings. The regulator has not yet issued guidance on AI in this context. What is the most critical factor in determining the acceptable balance?

   • AThe regulator's lack of guidance means the system cannot be adopted.
   • BThe firm should evaluate the trade-off between fraud savings and customer impact against its stated risk appetite and the regulatory uncertainty.
   • CThe firm should reject the system because the false positives could damage the brand.
   • DThe firm should adopt the system because the fraud savings clearly outweigh the false-positive risk.
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6. 10application · medium

   A regional bank is considering launching a mobile-only payment app to compete with fintech startups. The board has a low risk appetite, but the CEO argues that without this product the bank will lose market share within two years. The compliance team has confirmed that the app can be built to meet all regulatory requirements, but the timeline is tight. What should the strategy team do to determine an acceptable balance between opportunity and risk?

   • AProceed with the app immediately because the compliance team confirmed regulatory feasibility.
   • BRecommend abandoning the project because the board's low risk appetite is incompatible with any new product launch.
   • CPresent the board with a risk assessment that quantifies the market opportunity, the compliance costs, and the residual risk after mitigation.
   • DDelegate the decision to the CEO because they are accountable for the strategic direction of the company.
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