4. Risk Response and Control

Response Strategies — Quiz

Test your understanding of response strategies with 5 practice questions.

Practice Questions

Question 1

A university is considering a new academic program that requires specialized equipment with a very high purchase and maintenance cost. After a thorough market analysis, they determine that there is a significant risk of low student enrollment, making the program financially unsustainable. Consequently, the university decides not to launch the program at all. Which risk response strategy is being employed?

Question 2

When a university implements a comprehensive cybersecurity training program for all faculty and staff to reduce the likelihood of human error leading to data breaches, which risk response strategy is being primarily used?

Question 3

A university's endowment fund invests in a highly diversified portfolio across various asset classes and geographic regions. This approach is primarily aimed at reducing the impact of market volatility on any single investment. Which risk response strategy does this exemplify?

Question 4

A university is planning a major fundraising campaign that involves significant public events. They identify a risk of reputational damage if a key donor or public figure associated with the campaign is involved in a scandal. To manage this, they conduct thorough background checks on all prominent individuals involved and include clauses in agreements allowing for disassociation if necessary. Which risk response strategy is being employed?

Question 5

A university's facilities department identifies a risk of minor, non-critical equipment malfunction in a rarely used administrative office. The cost of implementing a preventative maintenance schedule for this specific equipment is high, and the impact of its failure would be minimal, causing only a slight inconvenience. The university decides to simply budget for potential repair costs if the malfunction occurs. Which risk response strategy is being applied?