1. The COSO ERM application techniques materials recommend the use of ____ to review processes and identify potential risk events.

1. Internal surveys
2. Flow diagrams
3. External consultants
4. None of the above

2. The probability or possibility that a risk will occur is called:

1. Impact
2. Likelihood
3. Assessment
4. Quantitative analysis

3. The strategy of walking away from a risk is called:

1. Reduction
2. Avoidance
3. Insurance
4. Acceptance

4. The process of looking at ERM functions in other enterprises to assess their operations and to develop an approach based on the best practices of others is called:

1. Facilitation
2. Internal audit
3. Process review
4. Benchmarking

5. Errors that are caused by factors that do not affect the rest of the population are called:

1. Standard errors
2. Nonrecurring errors
3. Nonsystematic errors
4. Systematic errors

6. To examine the costs of various alternative outcomes, a risk manager would carry out a:

1. Decision tree analysis
2. Risk response analysis
3. Differential analysis
4. Impact analysis