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

What is an issue?

A. An uncertain event that may occur in the future

B. An outcome perceived as negative by one or more stakeholders

C. An intangible artefact produced as a result of a planned activity

D. A relevant event that has happened requiring management action

Which describes the 'reduce a threat' risk response option?

A. Perform an action to minimise the impact and/or probability of the risk

B. Remove the cause of the threat

C. Obtain an insurance policy to cover the impact should the risk occur

D. Partake in a pain/gain contract with another party for the specified risk

What does a 'risk management strategy' describe?

A. Series of steps needed to implement risk management

B. Specific risk management practices that will be performed within an activity

C. Risk management policies that will be implemented throughout an organization

D. Processes required to improve risk management within an organization

Which risk response option 'takes the chance' that the risk will occur, with its full impact if it did?

A. Accept the risk

B. Transfer the risk

C. Share the risk

D. Prepare contingent plans

What provides an analysis of trends of risks in different risk categories?

A. Risk management strategy

B. Risk progress report

C. Risk communications plan

D. Risk improvement plan

Which action does NOT contribute to achieving the goal of the 'identify - risks' step?

A. Describe risks faced by the organization that may prevent an activity from succeeding

B. Define an activity's key performance indicators

C. Obtain information about the external and internal factors that may affect the planned activity

D. Understand a stakeholder's view of an activity's risk profile

Which is a responsibility of the team?

A. Ensure adequate resources are available to implement the risk management strategy

B. Run risk management workshops

C. Develop the risk improvement plan

D. Identify and escalate risks

Which is recorded in the 'risk register'?

A. Events that have already occurred

B. Organizational risk appetite and capacity

C. Risk management practices within an organization

D. Threats and opportunities

Which information from the risk register is used during the 'assess - evaluate' step to calculate the total risk exposure of an activity?

A. Identified risks resulting from a risk response action

B. Estimated likelihood of the risks occurring

C. Exposure of the risks after completion of risk responses

D. The timeframe in which the risks are likely to occur