FEMA IS-454: Fundamentals of Risk Management Answers

1. Which of the following best describes the role of risk communications in risk management?

A. External communications are far more important to the entire risk management process than internal communications.
B. Communications is not a major factor in the DHS Risk Management Cycle in comparison with the other steps.
C. The risk management process relies on effective communication mostly at the beginning of the DHS Risk Management Cycle.
D. Communications underpin the entire risk management process and should be ongoing throughout the life of a risk management action or strategy.

2. Which of the following best defines risk management?

A. A process of identifying the potential for an unwanted outcome, determining what to do about it from among the available alternatives, and then doing it.
B. The potential for an unwanted outcome resulting from an incident, event, or occurrence, as determined by its likelihood and the associated consequences.
C. A physical feature or operational attribute that renders an entity, asset, system, network, or geographic area open to exploitation or susceptible to a given hazard.
D. The management of the consequence of something happening, described in either quantitative terms of probability or frequency.

3. Why is it important to understand the risk perceptions of others when planning for communication in the risk management process?

A. Unless everyone has the same risk perceptions, effective risk management is impossible.
B. Revealing the risk perceptions of others could create a conflict of interest and derail the process.
C. To communicate effectively, you must accurately and appropriately address the risk perceptions of others.
D. Effective communication must avoid influencing the risk perception of others.

4. In the case of a hurricane making landfall near Miami, what would be the associated likelihood and consequences?

A. The likelihood is the chance of such an event based on various factors and the consequences could include flooding and storm damage, death, injuries, economic impacts and more.
B. Both likelihood and consequences for a natural disaster are impossible to predict.
C. The likelihood refers to the ability of authorities to evacuate residents and the consequences cannot be determined prior to the event.
D. The likelihood can only be determined one week in advance of the actual event and the consequences are an estimate based on other natural disasters.

5. As portrayed in the Risk Management Cycle, which of the following best describes the factors considered when performing a risk assessment?

A. The types of things that could happen and what it would take to prevent those things from happening.
B. The responsibilities of those involved for performing the necessary evaluation of the decisions being made.
C. How likely it is that something will happen and what the consequences would be if it did happen.
D. The present risk management environment and the objectives and outcomes that are expected to be achieved.

6. What is risk?

A. A negative consequence resulting from an action.
B. The likelihood of something happening.
C. Any consequence resulting from negative actions.
D. The potential for an unwanted outcome.

7. Which can benefit from the conscientious application of risk management principles and processes?

A. Operational Planning
B. Research and Development
C. Resource Decisions
D. All of the above

8. At what step in the DHS Risk Management Cycle should you first consider the goals and objectives being pursued, the policies and standards of your organization, and the scope and criticality of the risk management decision being made?

A. Assess and analyze
B. Evaluate and monitor
C. Define the context
D. Decide and implement

9. Which statement best describes the effect of risk perception on decision-making?

A. It is important for decision-makers to convince others of the correct perception of a particular risk.
B. Awareness of risk perceptions is vital in making decisions based on the best available factual basis.
C. A person with keen perception will be a better risk management decision-maker.
D. Negative risk perceptions will most often lead to poor risk decision-making.

10. Potential negative consequences of a certain risk are estimated to cost no more than fifty thousand dollars and there is no likelihood of injuries or death related to the risk. Deciding to spend millions of dollars to manage this risk would violate which risk management principle?

A. Transparency
B. Customization
C. Unity of Effort
D. Practicality

11. When dealing with a risk such as the threat of an explosive device being brought into the United States Capitol Building, what would be the most logical risk management strategy?

A. Risk Acceptance
B. Risk Transfer
C. Risk Avoidance
D. Risk Control

12. Which risk management principle recognizes that risk management cannot eliminate all uncertainty nor be reasonably expected to identify all risks and their likelihood and consequences?

A. Customization
B. Transparency
C. Practicality
D. Adaptability

13. When identifying potential risks, which source of information would work best for known hazards that occur somewhat frequently, such as hurricanes on the Gulf Coast?

A. Conferencing
B. Secure-source information
C. Reviewing past events
D. Red or blue teaming

14. What term is defined as the subjective beliefs and/or judgment about the characteristics and/or severity of risk?

A. Likelihood
B. Evaluation
C. Risk Management
D. Risk Perception

15. In the workplace and elsewhere, what is one of the most common and valuable uses of risk management?

A. As a general accounting method of organizational assets.
B. As an approach for making and implementing important decisions.
C. As a training exercise for new employees or those seeking promotion.
D. As a blueprint for conducting emergency response exercises.

16. Which of the following best describes the DHS Risk Management Cycle?

A. The DHS Risk Management Cycle fosters preparedness for terrorist attacks by providing annual full-scale training exercises.
B. The DHS Risk Management Cycle promotes a shared understanding of how to deal with problems through better structured and informed decision-making.
C. The DHS Risk Management Cycle promotes specialization through the regular assignment of certain tasks to particular Components within DHS.
D. The DHS Risk Management Cycle enables Components to operate in a risk-free environment.

17. When communicating risk, what should be done to maintain trust if new information is not consistent with what you’ve said in the past?

A. Present the current information and avoid discussing what was said in the past.
B. Alter the new information to make any inconsistencies less apparent.
C. Replace those in charge of communications.
D. Acknowledge the change or previous mistakes and then explain the situation as it stands.

18. Which risk management strategy involves the decision to either completely remove the sources of a particular risk or removing the organization or individual, themselves, from the risk?

A. Risk Avoidance
B. Risk Transfer
C. Risk Acceptance
D. Risk Control

19. Which of the following is NOT a valid consideration when developing and evaluating risk management alternatives?

A. The potential costs and benefits of a particular alternative.
B. The potential consequences of the risk.
C. The time it will take to assess the implementation.
D. The likelihood of the risk.

20. Which is the best example of how an average citizen can contribute to homeland security risk management in the community?

A. Purchasing auto insurance
B. Volunteering to work in an animal shelter
C. Reporting suspicious activities to the proper authorities
D. Shopping at a local merchant

21. Which of the following would be most helpful toward ensuring effective emergency communications

A. Withholding information that could damage the reputation of those in charge.
B. Building a reputation of credibility and trust through open, two-way communication.
C. Waiting for an emergency to happen before establishing any communications.
D. Releasing all information regardless of its sensitivity or psychological impact on those involved.

22. Which of the following is an accurate statement about the value of risk management?

A. The only value in risk management is when it saves lives.
B. Risk management is applicable to everyone in all sorts of ways.
C. Risk management is used by very few people outside of the workplace.
D. The expense of risk management limits its practical value.

23. Which of the following is an accurate statement regarding risk management concepts?

A. Risk management in the workplace is based on a different set of concepts than risk management at home.
B. We practice risk management so that we never have to accept risk.
C. Careful risk management will lead to the elimination of risk.
D. Risk management is how we approach problems to minimize the negative impact incurred.

24. Which of the following would be an example of ineffective risk communication?

A. Ignoring concerns from your audience that are obvious misconceptions.
B. Avoiding jargon and discussing a situation without unnecessary technical or scientific information.
C. Preparing communication releases in all languages common to the area.
D. Establishing open communications before an event takes place.

25. What would most likely influence someone to choose “risk acceptance” as a strategy to manage a given risk?

A. A risk that has occurred recently with consequences that were very costly in terms of human and economic impact.
B. A risk with consequences that cause physical harm or death and a strong likelihood.
C. If they perceive the risk as very likely with significant consequences.
D. If they perceive the likelihood of the risk as relatively low and the benefits from accepting the risk as high.

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