Potential losses resulting from employee errors and system failures are examples of:

1. A. operational risk.
2. B. market risk.
3. C. strategic risk.

Correct Answer: A

Which of the following is considered an exploit event?

1. A. An attacker takes advantage of a vulnerability
2. B. Any event that is verified as a security breach
3. C. The actual occurrence of an adverse event

Correct Answer: A

Key risk indicators (KRIs) are metrics designed to:

1. A. alert there is an increased chance of exceeding risk appetite.
2. B. be a direct measure of risk for each business line.
3. C. measure current risk levels in comparison to past levels.

Correct Answer: A

An enterprise??s risk policy should be aligned with its:

1. A. current risk.
2. B. risk capacity.
3. C. risk appetite.

Correct Answer: C

How does an enterprise decide how much risk it is willing to take to meet its business objectives?

1. A. By conducting research on industry standards for acceptable risk based on similar businesses
2. B. By identifying the risk conditions of the business and the impact of the loss if these risks materialize
3. C. By surveying business initiatives to determine what risks would cease their operations

Correct Answer: B