PC0-006 Online Practice Questions and Answers

Identify the missing words in the following sentence. The lack of [ ? ] is a common barrier to implementing the risk management process.

A. a high-risk appetite

B. appropriate responses to risks

C. clear guidance for managers and staff

D. an assigned risk owner

Which is a purpose of the 'risk management policy'?

A. Explain the actions required to implement risk management

B. Define the Specific risk management activities that will be performed for an activity

C. Describe how risk management practices will be implemented throughout an organization

D. Record information about threats and opportunities for an organizational activity

Identify the missing word in the following sentence. Applying the 'aligns with objectives' principle at the [ ? ] perspective ensures risk management is responsive to changes to objectives that meet shareholder needs, reputation and demand for services.

A. operational

B. project

C. programme

D. strategic

Identify the missing words in the following sentence. Because organizations [ ? ] they need to use the environmental risk management' specialism.

A. are concerned about stakeholder perceptions

B. see brand and reputation as key assets

C. face financial penalties for polluting waterways

D. fail to deliver minimum standards

What is the purpose of using an M_o_R'health check'?

A. Understand the nature of risks facing an organization and the actions needed to respond

B. Provide alternative assurance and approval processes at key decision points within a programme

C. Examine an organization's current risk management practices to identify areas for improvement

D. Show which organizational activities that risk management should be applied to

Which specialism has been developed to offer business as usual in the quickest possible time in the event of an emergency?

A. Incident and crisis management

B. Business continuity management

C. Health and safety management

D. Reputational risk management

What is the initial probability recorded in the risk register based on?

A. Proximity of the risk

B. Stage of the activity

C. Post-response assessment

D. Pre-response assessment

Which is NOT a method for obtaining senior management commitment and support for understanding and managing risk?

A. Having a board-level sponsor defined and communicated to all staff

B. Undertaking qualitative and quantitative assessment of risks

C. Communicating risk management successes

D. Having risk delivery linked to performance objectives

What is the difference between a risk and an issue?

A. An issue has a short time-scale proximity and risk has medium- or long-term proximity

B. An issue impacts on quality, a risk impacts on benefits

C. An Issue is a risk that has occurred, a risk is yet to occur

D. A risk can impact on all activities, an issue impacts on project deliverables only

What provides a comparison of completed risk response actions with planned outcomes?

A. Risk management strategy

B. Risk improvement plan

C. Risk progress report

D. Risk response plan