BU 531 Strategic and Risk Management FINALS REVIEW QUESTIONS & ANSWERS

BU 531 Strategic and Risk Management FINALS REVIEW QUESTIONS & ANSWERS

1. Which of the following frameworks is primarily used to
   identify the internal and external factors that impact an
   organization's strategy?
    a) SWOT Analysis
    b) Porter's Five Forces
    c) PESTEL Analysis
    d) Balanced Scorecard
    ANS: a) SWOT Analysis
    Rationale: SWOT Analysis focuses on identifying strengths,
   weaknesses (internal), opportunities, and threats (external).
   2. In risk management, which term refers to the likelihood and
   impact of an event, often used to prioritize risks?
    a) Risk Control
    b) Risk Exposure
    c) Risk Mitigation
    d) Risk Appetite
2. ANS: b) Risk Exposure
    Rationale: Risk exposure combines the probability of
   occurrence and the impact on objectives.
   3. What is the primary purpose of a risk register in risk
   management?
    a) To eliminate all identified risks
    b) To document and monitor risks
    c) To foresee all potential future risks
    d) To ensure compliance with regulations
    ANS: b) To document and monitor risks
    Rationale: A risk register is a tool for recording identified
   risks, analyzing their potential impact, and tracking them over
   time.