Risk Management Assessment: Sample Questions | Bryq
Beginner
Intermediate
Advanced
These are three sample questions from Bryq’s Risk Management assessment, a knowledge test for hiring risk analysts, risk managers, compliance specialists and project managers. The full assessment covers three levels: beginner, intermediate and advanced, from risk identification and assessment techniques to risk modeling, enterprise risk management and governance, and risk response strategies. Each question is multiple choice, with one correct answer out of four options.
Beginner
Intermediate
Question
A risk has a 20% chance of occurring and would cost $50,000 if it did. What is its expected monetary value?
Select your answer
$10,000
$50,000
$40,000
$250,000
WHY IS THIS THE CORRECT ANSWER
Expected monetary value is probability multiplied by impact: 0.20 × $50,000 = $10,000. It gives a single figure for comparing risks and sizing contingency reserves, rather than planning for the full $50,000 loss as if it were certain.
Intermediate
Intermediate
Question
After a fire suppression system is installed in a data center, the remaining risk that a fire still causes damage is known as what?
Select your answer
Residual risk
Inherent risk
Secondary risk
Risk appetite
WHY IS THIS THE CORRECT ANSWER
Residual risk is what remains after controls are in place, and it is compared against risk appetite to decide whether more treatment is needed. Inherent risk is the level of risk before any controls. A secondary risk is a new risk created by the response itself, such as water damage from the suppression system.
Advanced
Intermediate
Question
A trading portfolio has a one-day 99% Value at Risk (VaR) of $2 million. What does this mean?
Select your answer
On 99% of trading days, losses should not exceed $2 million.
The maximum possible loss in a single day is $2 million.
The average daily loss is expected to be $2 million.
There is a 99% chance of losing $2 million tomorrow.
WHY IS THIS THE CORRECT ANSWER
A one-day 99% VaR of $2 million means losses are expected to stay at or below $2 million on 99 out of 100 trading days. It says nothing about how large losses could be on the remaining 1% of days, which is why VaR is often paired with expected shortfall or stress testing.
