Free Financial CFSA Exam Questions (page: 6)

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Following statements define risk EXCEPT:

  1. Organization has knowledge of facts constituting a dangerous condition
  2. Organization voluntarily exposes itself to the danger
  3. The element of assurance in an undertaking
  4. Measured in terms of impact and likelihood

Answer(s): C



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Strategic planning is the process of taking a long-term view of the organization, the longer the view, the greater the uncertainty of risks and opportunities. Such reservations can better be handled by:

  1. Timely decisions
  2. Flexible/ Adaptive plans and processes
  3. Periodic risk assessments
  4. Focusing on current period organizational activity

Answer(s): B



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High-risk scores are those with an average of scores:

  1. 3.75 or more
  2. 3.25 or more
  3. 4.25 or more
  4. 4.00 or more

Answer(s): C



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Low-risk scores are those with an average of scores:

  1. 2.25 or less
  2. 2.75 or less
  3. 2.00 or less
  4. 3.25 or less

Answer(s): A



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Risks inherent in the management process are known as:

  1. Residual risks
  2. Long-term risks
  3. Control risks
  4. Strategic risks

Answer(s): C



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