Understand the Role of Risk and Risk Management in DPI (1.2.1.3, 2.3, 2.3.1-2) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A digital product team is developing a new feature that uses artificial intelligence to personalize content. The team identifies a risk that the AI algorithm could produce biased recommendations. They decide to implement a bias detection and correction mechanism. Which risk management principle does this action reflect?

   • AProactive risk management
   • BRisk avoidance
   • CRisk acceptance
   • DRisk transfer
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   According to ITIL 4, what is a key principle of risk management?

   • ARisk should be avoided whenever possible to ensure stability
   • BRisk management is primarily the responsibility of the finance department
   • CRisk management should balance the potential benefits of an activity against the potential losses
   • DRisk management is a separate activity from value creation
   Reveal Solution Discussion Select an answer first
4. 23expert · hard

   A company is developing a new digital product that uses customer data. They identify a risk of a data breach. The team is considering two options: implementing advanced encryption (costly) or purchasing cyber insurance (cheaper). The company has a low risk appetite for data breaches. Which option is more aligned with their risk appetite?

   • ADelay the product launch until a cheaper mitigation is found.
   • BImplement advanced encryption to reduce the likelihood of a breach.
   • CPurchase cyber insurance to transfer the financial risk.
   • DAccept the risk because the product value is high.
   Reveal Solution Discussion Select an answer first
5. 24expert · medium

   A service provider is integrating risk management into its service value chain. They want to ensure that risk is considered in the 'obtain/build' activity. Which action best supports this?

   • AReviewing risks only after the component is deployed.
   • BUsing a standard procurement process without risk consideration.
   • CDelegating all risk decisions to the procurement team.
   • DConducting a risk assessment before procuring or building new components.
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   An IT organization is integrating risk management into its service value system. They want to ensure that risk considerations are embedded in every step of the service value chain, from demand to value. Which approach best achieves this integration?

   • ACreate a separate risk management process that operates independently of the service value chain.
   • BEstablish a risk management policy that is applied consistently across all service value chain activities.
   • CConduct a single risk assessment at the start of each new service initiative.
   • DAssign a dedicated risk manager to review risks only during the design and transition stages.
   Reveal Solution Discussion Select an answer first