Module 8 — 100 Multiple‑Choice Questions
Risk Management & Sustainability • Search • Part Filter • Instant Feedback
1
Which list best captures major risk categories for a business?
Comprehensive view: strategy, ops, finance, outside shocks, reputation.
2
A tool to scan external macro risks is…
PESTEL = Political, Economic, Social, Technological, Environmental, Legal.
3
A risk workshop helps by…
Cross‑functional sessions expose blind spots.
4
A common strategic risk is…
Mis‑positioning and timing errors are strategic risks.
5
An operational risk example is…
Ops risks arise from processes, people, and systems.
6
External risks include…
They come from outside the firm’s control.
7
Reputational damage can be triggered by…
Digital channels spread negative stories fast.
8
COVID‑19 revealed which preparedness gap?
Firms with delivery/online channels fared better.
9
A practical first step in risk ID is…
Track risks with attributes and accountability.
10
Effective leaders treat risk management as…
Embed risk thinking into decisions.
11
Why keep cash reserves (e.g., 3–6 months OPEX)?
Liquidity buys time and options.
12
Diversified revenue streams reduce…
Dependence on a single product/client can be fatal.
13
Zero‑based budgeting helps by…
It removes inertia and waste.
14
A KPI that tracks survival runway is…
Runway = cash / monthly burn.
15
Scenario planning should model…
Prepare responses for each scenario.
16
Leverage becomes dangerous when…
Over‑levering magnifies downturn losses.
17
Hedging FX or rates aims to…
Use forwards/options/swaps appropriately.
18
Insurance in finance risk helps by…
Risk transfer complements prevention.
19
Working capital health is seen in…
Optimize cash conversion cycle.
20
Tesla’s survival years illustrate…
Multiple raises + alliances bought time.
21
Non‑compliance can lead to…
Legal exposure is existential.
22
Contract risk often stems from…
Write, review, and standardize contracts.
23
Employment law risk includes…
Train managers and HR on rules.
24
GDPR/Privacy failures cause…
Privacy compliance is critical globally.
25
IP protection requires…
Rights are territorial—file early.
26
Mitigation for legal risk includes…
Proactive reviews prevent surprises.
27
Tax compliance hygiene is…
Avoid penalties and interest.
28
Regulatory shifts are best handled by…
Stay ahead of rule changes.
29
Training staff on policies…
People cause most compliance failures.
30
A clear data processing agreement (DPA) defines…
Contracts must embed privacy obligations.
31
Business continuity planning (BCP) ensures…
Focus on critical processes and recovery.
32
A key BCP metric is…
How fast to restore; how much data loss is tolerable.
33
Single‑point‑of‑failure (SPOF) refers to…
Eliminate/backup SPOFs.
34
Supplier concentration risk is mitigated by…
Build optionality.
35
Incident management should include…
Structured response shortens outages.
36
Capacity risk is lowered by…
Prove systems at peak demand.
37
Quality escapes are reduced by…
Prevention beats detection.
38
Key person risk is addressed via…
Spread knowledge; keep SOPs.
39
Facility outages call for…
Prepare alternate sites and drills.
40
Operational dashboards should track…
See problems early and act.
41
Most breaches start with…
Train people; add controls.
42
Multi‑factor authentication (MFA)…
Simple, high‑impact control.
43
Encryption ‘at rest’ and ‘in transit’…
Defense‑in‑depth basic.
44
Zero‑trust approach says…
Assume compromise; verify continuously.
45
Patch management matters because…
Keep systems current.
46
Backups mitigate…
3‑2‑1 backup rule is common practice.
47
An incident response plan should include…
Practice with tabletop exercises.
48
Data minimization means…
Less data = less exposure.
49
Vendor security is assessed via…
Third‑party risk is major.
50
Security awareness training should be…
People learn by doing.
51
Risk transfer refers to…
Insurance complements controls and avoidance.
52
General liability insurance covers…
Protects against common claims.
53
Business interruption insurance helps when…
Covers lost income and extra expenses.
54
Cyber insurance typically covers…
Read sublimits and exclusions carefully.
55
Key person insurance mitigates…
Provides funds to stabilize operations.
56
Professional indemnity (E&O) protects against…
Service businesses often need it.
57
D&O insurance protects…
Useful for boards and investors.
58
Deductibles/retentions are…
Affects premium and risk sharing.
59
An insurance program should be…
Align limits to growth and contracts.
60
Certificates of insurance (COI) are used to…
Often a contractual requirement.
61
Sustainability is best seen as…
Drives efficiency and growth.
62
Energy initiatives include…
Lower footprint and OPEX.
63
Sustainable sourcing means…
Reduce upstream risk and improve reputation.
64
Waste reduction tactics include…
Less waste = lower cost + greener ops.
65
Eco‑design focuses on…
Design choices drive most lifecycle impact.
66
Carbon offsetting does…
Use alongside reductions, not instead of.
67
A credible climate target is…
Backed by data and audits.
68
A good KPI set includes…
Track footprint comprehensively.
69
IKEA’s commitment to climate‑positive shows…
Sustainability can drive competitiveness.
70
Supplier engagement on sustainability should…
Partner to lift the whole chain.
71
Social responsibility can…
Mission strengthens brand and retention.
72
Fair labor practices include…
Compliance and ethics both matter.
73
Diversity & inclusion helps by…
Diverse teams win in complex markets.
74
Community investment might include…
Create shared value where you operate.
75
Ethical sourcing avoids…
Protect reputation and legal exposure.
76
Transparency with stakeholders means…
Trust grows with visibility.
77
CSR is most effective when…
Make impact part of the business model.
78
A strong example is…
Authenticity drives loyalty.
79
Measuring social impact should…
Quantify and report results.
80
Ethics hotlines and training…
Channels enable accountability.
81
Reputation is…
Protect it like cash.
82
Delivering on promises builds…
Consistency is the strongest branding.
83
Online monitoring should…
Act fast to shape narratives.
84
In a crisis, best practice is…
Own it, fix it, learn.
85
Employee advocacy matters because…
Internal culture shows outside.
86
Corporate storytelling helps by…
Narrative leadership wins hearts.
87
Toyota’s recalls showed…
Do the right thing visibly.
88
A reputation risk register should include…
Prepare for foreseeable hits.
89
Preventive control for reputation is…
Great CX reduces negative incidents.
90
A key metric of brand trust is…
Behavioral indicators show real trust.
91
An exit plan during crisis is…
Plan B protects legacy.
92
M&A as an exit can…
Often the best path in downturns.
93
A management buyout (MBO)…
Continuity with known leaders.
94
Liquidation means…
Sometimes the rational choice.
95
IPO as exit requires…
Public markets demand discipline.
96
Family succession success hinges on…
Start early; phase the transition.
97
During crisis, timing matters because…
Proactive moves widen options.
98
Clean financials attract buyers by…
Quality of earnings and documentation speed DD.
99
Stakeholder care in exits includes…
Protect reputation and relationships.
100
Legal readiness for exit requires…
Reduce surprises in diligence.