Lesson 2.9.1

2.9.1 Contingency planning and crisis management Quiz: OCR Business, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.9.1, Contingency planning and crisis management: 20 multiple choice questions for the OCR Business (H431), Unit 2: Business objectives and strategy, written with Revision Ninja.

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The 20 questions

  1. What is the main proactive process of preparing for potential future emergencies called?

    • Sequential planning
    • Crisis management
    • Contingency planning
    • Change management

  2. How is crisis management best described in relation to unexpected disruptive events?

    • Strategic positioning
    • Market forecasting
    • Reactive response
    • Proactive preparation

  3. Which two factors are mapped on a standard business risk assessment matrix?

    • Profit and loss
    • Speed and duration
    • Cost and revenue
    • Probability and impact

  4. What is the primary purpose of a business continuity plan?

    • Reducing tax liability
    • Eliminating all risks
    • Maximising short-term profit
    • Maintaining key operations

  5. A factory calculates a 5% chance of a £100,000 failure. What is the expected loss?

    • £5,000
    • £500
    • £20,000
    • £50,000

  6. Which risk profile typically requires an immediate contingency plan and insurance cover?

    • Low probability, high impact
    • Low probability, low impact
    • High probability, low impact
    • High probability, high impact

  7. What is a major financial disadvantage of developing comprehensive contingency plans?

    • Lower insurance premiums
    • High opportunity cost
    • Decreased employee safety
    • Reduced brand equity

  8. What action should a business take for risks categorised as high probability and high impact?

    • Transfer to customers
    • Accept without action
    • Mitigate or avoid
    • Ignore completely

  9. Why do businesses regularly conduct simulated crisis drills for staff?

    • Avoiding regulatory compliance
    • Increasing sales volume
    • Reducing wage costs
    • Testing plan effectiveness

  10. What is a key focus of a formal disaster recovery plan?

    • Designing marketing campaigns
    • Setting product prices
    • Recruiting senior managers
    • Restoring IT systems

  11. A food manufacturer discovers bacterial contamination in its products. What is the immediate priority?

    • Price increase
    • Factory expansion
    • Product recall
    • Staff redundancy

  12. How should a business communicate with the public during an operational crisis?

    • Transparently and promptly
    • Aggressively and defensively
    • Secretively and slowly
    • Vaguely and infrequently

  13. Which strategy transfers the financial risk of a potential flood away from a business?

    • Holding cash reserves
    • Outsourcing production
    • Taking out insurance
    • Cutting marketing spend

  14. What is a major reason why contingency plans may fail during a real crisis?

    • Excessive testing
    • Clear communication
    • Outdated information
    • Strong leadership

  15. A bank sets aside £2 million strictly for emergency cyberattack recovery. What is this fund?

    • Capital expenditure budget
    • Retained profit target
    • Working capital surplus
    • Contingency reserve

  16. Which event represents an external operational crisis for a manufacturing company?

    • Machinery operator error
    • National power failure
    • Internal fraud attempt
    • Flawed product design

  17. What is the main benefit of designating a trained crisis spokesperson before an event?

    • Lower legal taxes
    • Faster production output
    • Guaranteed profit growth
    • Consistent public messaging

  18. If a risk has a 20% probability and £50,000 impact, what is its risk value?

    • £1,000
    • £2,500
    • £10,000
    • £40,000

  19. Which public relations response is most damaging to a firm's reputation during a crisis?

    • Denying obvious responsibility
    • Cooperating with authorities
    • Providing regular updates
    • Expressing genuine sympathy

  20. What key factor determines whether a business should implement a costly contingency plan?

    • Current exchange rate
    • Cost versus risk
    • Competitor ad spend
    • Dividend payout ratio

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