Free mor_foundation sample questions

Correct answers: Conducting a stakeholder analysis to identify all relevant parties and their interests.; Developing a communication plan that defines how and when risk information will be shared.; Assigning clear ownership for each identified risk to a specific stakeholder.

This is a fundamental first step to ensure the right people are involved and their perspectives are considered.

Effective engagement relies on clear, planned communication tailored to different stakeholder groups.

Assigning ownership makes engagement meaningful and accountable, ensuring stakeholders are actively involved in managing the risks relevant to them.

Correct answer: Informs decision-making

The core purpose of identifying and assessing risks is to provide information that leads to better, more informed decisions. In this scenario, the information was available but not used, representing a clear failure of the 'Informs decision-making' principle. The risk management activity did not influence the board's choice.

Correct answer: Creates a supportive culture

The scenario explicitly describes a 'blame culture' as the core problem. The consultant's recommendations—rewarding proactive identification and implementing no-blame reviews—are direct interventions aimed at transforming this into a supportive risk culture where open communication about risk is encouraged and valued. This aligns perfectly with the 'Creates a supportive culture' principle.

Correct answer: The Risk Management Policy and the Risk Management Strategy

The Risk Management Policy outlines the organization's overall intent and commitment (the 'what' and 'why'). The Risk Management Strategy details the specific methods, resources, and timeline for implementing that policy (the 'how'). This separation is a key part of the M_o_R approach.

Correct answer: Exploit

The 'Exploit' response is used for opportunities that the organization wants to pursue aggressively to ensure the benefits are realized. Given the significance of a 20% cost reduction, the organization would want to take decisive action to make it happen, which is the essence of the Exploit strategy.

Correct answer: In the Issue Log, as it is a problem that has already occurred

A key distinction in M_o_R is between a risk (an uncertain event that *may* occur) and an issue (a problem, concern, or event that *has* occurred or is certain to occur). Since the supplier's bankruptcy has happened, it is no longer a risk; it is an issue that must be managed and should be recorded in the Issue Log.

Correct answer: Risk Management Policy, Risk Management Strategy, and Risk Management Process Guide

This combination correctly identifies the hierarchical set of M_o_R approach documents. The Policy defines the high-level intent. The Strategy outlines how the policy will be achieved. The Process Guide provides the detailed, step-by-step procedures and templates for practitioners to follow. Together, they form the complete foundation for the risk management framework.

Correct answer: To understand the internal and external environment and objectives before identifying specific risks.

The 'Identify - Context' step is foundational. Its purpose is to understand the environment in which the organization or activity operates and to clarify the objectives. This provides a baseline against which risks (threats to objectives and opportunities to exceed them) can be meaningfully identified.

Correct answer: Qualitative assessment using a probability impact grid

Qualitative assessment is ideal when data is limited, and the goal is rapid prioritization. Using a probability impact grid (as visualized in the diagram) allows the analyst to use expert judgment and defined scales (e.g., High, Medium, Low) to quickly categorize and prioritize the risk relative to others.

Correct answer: Share

The 'Share' response for an opportunity involves allocating ownership to a third party who is best able to capture the opportunity for the benefit of the business. Creating a joint venture is a classic example of sharing, where both parties contribute to and benefit from the opportunity, while also sharing the associated risks.