1|Page
WGU D515 Enterprise Risk Management Exam||
VERIFIED QUESTIONS AND ANSWERS ALREADY
GRADED A+. 100% Verified Solutions | Updated Per
Latest Guidelines | Graded A+||Newest Exam!!!
A governmental department has noticed that oversight of
contract allocations to private contractors is increasingly
failing audits. The heads of the governmental department
benefit financially when contracts are allocated, and the
organization's budget growth is dependent on a continued
increase in contract allocations. How should the
organization adjust structurally to remedy this compliance
risk? - Answer-By building risk awareness into directors'
performance goals
A company has experienced a data breach that resulted in
the dissemination of trade secret information. Executives
have diagnosed the source of the breach to be human
error and must update the company's risk mitigation
protocol. How should the company reduce its risk? -
Answer-Add a secondary control procedure to the source
of the breach
A wood furniture manufacturer has created a risk
management profile that specifies risk criteria for climate
,2|Page
change. Due to changing weather conditions, timber
prices have risen and transport costs increased, while
consumer spending on durable home goods has
decreased. Which aspect of the risk management profile
should the manufacturer adjust, given this change? -
Answer-Procurement cost risk
A pharmaceutical company violated the company's risk
management protocols and federal regulations regarding
the advertising and promotion of pain medication. This
violation led to many patients facing physical ailments,
dependency, or death. What should the relationship be
between court-imposed penalties and violations? -
Answer-Sufficiently punitive to prevent future offenses
A financial institution is willing to offer loans to people and
companies who do not qualify for loans from competing
financial institutions because of their low credit ratings. By
doing so, the institution takes on more credit risk than its
competitors. How does this financial institution compare
with its competitors in terms of risk management? -
Answer-It has a higher risk tolerance.
A company underwent a bankruptcy reorganization during
a pandemic because the company was unable to remain
solvent. How should the company account for black swan
,3|Page
events in risk management in the future? - Answer-By
including a weighting for various black swan events in key
risk indicators
A semiconductor manufacturing company has been
reducing the amount of debt it takes to fund its capital
structure. As a result, there is a reduction in debt service
and risk from the debt. Soon, the regulatory burden on the
company is expected to decrease due to a change in
government policy. How will this affect the company's
approach to manage its risks going forward, assuming
other factors affecting the company's risk-taking capacity
remain constant? - Answer-The company will be able to
invest in more risky projects as the financial leverage of
the company has decreased.
An organization operates in a highly competitive
environment that is continuously changing because of
technological advancements and regulatory changes.
Despite market challenges, the management is tasked
with innovating and adapting while mitigating risks.
Consequently, the management is assessing employee
risk tolerance and aligning company goals with market
conditions. What does this scenario reflect about the
, 4|Page
company's risk tolerance capacity? - Answer-The
company maintains a balanced risk management strategy.
A pharmaceutical manufacturer is facing production
inefficiencies, quality control issues, and a loss of skilled
employees to competitors. Analysis reveals the company's
outdated technology to be the reason behind the
company's decline. What does the use of outdated
manufacturing technology exemplify in this scenario? -
Answer-Risk driver
A shoe manufacturer faces frequent equipment
breakdowns, resulting in a significant increase in costs
due to equipment downtime. To address this, the company
plans to purchase equipment breakdown insurance this
year. Which risk management strategy is the company
implementing? - Answer-Risk transfer
A consumer products and packaging company is
developing risk criteria as procedural rules for analyzing
and evaluating the significance of risk. What is the key
element that the company should consider? - Answer-
Internal guidelines for accepting specific risks as well as
overall risks
WGU D515 Enterprise Risk Management Exam||
VERIFIED QUESTIONS AND ANSWERS ALREADY
GRADED A+. 100% Verified Solutions | Updated Per
Latest Guidelines | Graded A+||Newest Exam!!!
A governmental department has noticed that oversight of
contract allocations to private contractors is increasingly
failing audits. The heads of the governmental department
benefit financially when contracts are allocated, and the
organization's budget growth is dependent on a continued
increase in contract allocations. How should the
organization adjust structurally to remedy this compliance
risk? - Answer-By building risk awareness into directors'
performance goals
A company has experienced a data breach that resulted in
the dissemination of trade secret information. Executives
have diagnosed the source of the breach to be human
error and must update the company's risk mitigation
protocol. How should the company reduce its risk? -
Answer-Add a secondary control procedure to the source
of the breach
A wood furniture manufacturer has created a risk
management profile that specifies risk criteria for climate
,2|Page
change. Due to changing weather conditions, timber
prices have risen and transport costs increased, while
consumer spending on durable home goods has
decreased. Which aspect of the risk management profile
should the manufacturer adjust, given this change? -
Answer-Procurement cost risk
A pharmaceutical company violated the company's risk
management protocols and federal regulations regarding
the advertising and promotion of pain medication. This
violation led to many patients facing physical ailments,
dependency, or death. What should the relationship be
between court-imposed penalties and violations? -
Answer-Sufficiently punitive to prevent future offenses
A financial institution is willing to offer loans to people and
companies who do not qualify for loans from competing
financial institutions because of their low credit ratings. By
doing so, the institution takes on more credit risk than its
competitors. How does this financial institution compare
with its competitors in terms of risk management? -
Answer-It has a higher risk tolerance.
A company underwent a bankruptcy reorganization during
a pandemic because the company was unable to remain
solvent. How should the company account for black swan
,3|Page
events in risk management in the future? - Answer-By
including a weighting for various black swan events in key
risk indicators
A semiconductor manufacturing company has been
reducing the amount of debt it takes to fund its capital
structure. As a result, there is a reduction in debt service
and risk from the debt. Soon, the regulatory burden on the
company is expected to decrease due to a change in
government policy. How will this affect the company's
approach to manage its risks going forward, assuming
other factors affecting the company's risk-taking capacity
remain constant? - Answer-The company will be able to
invest in more risky projects as the financial leverage of
the company has decreased.
An organization operates in a highly competitive
environment that is continuously changing because of
technological advancements and regulatory changes.
Despite market challenges, the management is tasked
with innovating and adapting while mitigating risks.
Consequently, the management is assessing employee
risk tolerance and aligning company goals with market
conditions. What does this scenario reflect about the
, 4|Page
company's risk tolerance capacity? - Answer-The
company maintains a balanced risk management strategy.
A pharmaceutical manufacturer is facing production
inefficiencies, quality control issues, and a loss of skilled
employees to competitors. Analysis reveals the company's
outdated technology to be the reason behind the
company's decline. What does the use of outdated
manufacturing technology exemplify in this scenario? -
Answer-Risk driver
A shoe manufacturer faces frequent equipment
breakdowns, resulting in a significant increase in costs
due to equipment downtime. To address this, the company
plans to purchase equipment breakdown insurance this
year. Which risk management strategy is the company
implementing? - Answer-Risk transfer
A consumer products and packaging company is
developing risk criteria as procedural rules for analyzing
and evaluating the significance of risk. What is the key
element that the company should consider? - Answer-
Internal guidelines for accepting specific risks as well as
overall risks
