FRM 2026 Part I Foundations of Risk Management Risk Management Free Quiz 2

Practice FRM 2026 Part I Foundations of Risk Management MCQs from Risk Management. Get instant results with Explanation.

General10 MCQs

1. What is a risk register?

A. A risk register lists identified risks, assessments, and responsesB. A risk register is a list of all the organisation's assetsC. A risk register is only for compliance risksD. A risk register is optional

2. What is the risk-return trade-off?

A. Higher risk is associated with lower returnsB. Risk and return are not relatedC. Lower risk is associated with higher returnsD. Higher risk is associated with higher expected returns (risk-return trade-off)

3. What is diversification in risk management?

A. Diversification eliminates all riskB. Diversification reduces unsystematic risk by spreading investmentsC. Diversification only reduces systematic riskD. Diversification does not affect portfolio risk

4. What are the three lines of defence in risk management?

A. The three lines of defence are: risk, compliance, and auditB. The three lines of defence are: management, board, and shareholdersC. The three lines of defence are: operational management, risk/compliance, and internal auditD. The three lines of defence are: finance, risk, and audit

5. Who is ultimately responsible for risk management in an organisation?

A. The board is ultimately responsible for risk managementB. Risk management is the sole responsibility of the CEOC. Risk management is the responsibility of the risk manager onlyD. The board has no role in risk management

General10 MCQs

6. How does risk management relate to strategic planning?

A. Risk management is separate from strategic planningB. Strategic planning does not consider risksC. Risk management is only for operational planningD. Risk management should be integrated with strategic planning

7. What are key risk indicators (KRIs)?

A. KRIs are the same as KPIsB. KRIs are metrics that provide early warning of risk increasesC. KRIs are only for operational risksD. KRIs are not used in practice

8. What is risk assessment?

A. Risk assessment is the same as risk identificationB. Risk assessment is only about financial risksC. Risk assessment involves evaluating likelihood and impact of risksD. Risk assessment is not part of risk management

9. How should risk management be maintained over time?

A. Risk management is a continuous process that should be reviewed regularlyB. Risk management is a one-time exerciseC. Risk management is reviewed only when a risk occursD. Risk management does not need to be updated

10. Why is risk awareness training important?

A. Risk awareness training is not neededB. Risk awareness training is only for managersC. Risk awareness training is a one-time activityD. Risk awareness training helps build a risk-conscious culture and supports early detection

Quick Links

Latest Admissions

International Scholarships

Popular Medical Colleges

Popular Universities

Scholarships

Entry Tests Preparation

International Entry Tests

Follow Us

Aggregate Calculator