AFA M_o_R® Style Exam Answers
Correct answers are marked in red.
Overviews
1) What is the definition of a risk?
a) Anything going wrong in a project
b) An uncertain event which should it occur will have an effect on the achievement of objectives c) Anything happening in the future
d) Anything bad
2) Where should risk management be carried out?
a) In specialist areas such as health and safety or information security, but not in general management because general managers are unlikely to be risk management experts
b) In projects
c) In the core operations of an organisation
d) Throughout the organisation but particularly where critical decisions are being made
Principles
3) Which of the following are risk management principles?
a) Stakeholder involvement, early warning indicators and supportive culture
b) Realisation, enhancement and exploitation
c) Assess, plan and implement
d) Strategic, programme and operational
4) Which of the following statements are false?
a) The context is the primary source of risk
b) Organisations should have the capacity and ability to respond quickly to risk
c) As the external context can be influenced but not controlled risk management should focus on internal factors
d) The context will influence the organisations risk appetite
Management of Risk Approach
5) Which documents might be included within the management of Risk Approach?
a) Risk Management Policy, Communications Plan, Risk Register
b) Risk Management Policy, Risk Management Strategy, Risk Register
c) Risk Progress Report, Risk Management Strategy, Risk Register
d) Risk Management Policy, Risk Management Strategy, Risk Response Plan
6) Which document communicates how risk management will be implemented throughout the organisation? a) Risk Management Policy
b) Risk Management Strategy
c) Risk Response Plan
d) Communications Plan
Management of Risk Process
7) Which of the following is not a common barrier to the implementation of risk management?
a) Lack of an organisational culture that appreciates the benefits of risk management
b) Immature risk management practices
c) Lack of clear guidance for managers and staff
d) A lack of risks, given the benign organisational context
8) When planning responses to threats which of the following types of response are invalid?
a) Reduction
b) Removal
c) Denial
d) Share
Embedding and Reviewing Management of Risk
9) Which of the following is not a high-level success factor?
a) Visible sponsorship, endorsement and support from senior management
b) Filtering of risks as they are escalated to ensure there are few corporate risks
c) Inclusion of risk management and its application within the induction programme
d) Benchmarking of risk management awareness
d) The use of marketing products/ tools to promote risk management
The Strategic Perspective
11) Which of the following is not a typical area of uncertainty within the strategic perspective
a) Additional or fewer participants in the organisation’s operating spec
b) Stakeholder perceptions of key policies
c) Opportunities to be employed by a competitor
d) The emergence of new technologies that change the business model
12) Which of the following are unlikely to be strategic stakeholders
a) Competitors
b) Key customers or customer groups
c) Political, legal or regulatory bodes
d) Employees
The Programme Perspective
13) Who is responsible for monitoring the business-as-usual environment and inheriting risks
a) Programme Manager
b) Programme
