Lesson 3.6.3
3.6.3 Scenario planning and risk mitigation Quiz: Pearson Edexcel Business, Unit 3
20 questions
In partnership with Revision Ninja
Lesson 3.6.3, Scenario planning and risk mitigation: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 3: Business decisions and strategy, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
Which of the following is a primary internal risk identified through risk assessment?
- Market taxes
- New tariffs
- State laws
- Loss of staff
-
What is the primary purpose of conducting a business risk assessment?
- Guaranteeing expansion
- Evaluating threat impact
- Maximising short profit
- Eliminating all costs
-
Which type of external event represents a natural disaster risk for a business?
- Cyber attack
- Severe flooding
- Product recall
- Supplier strike
-
What primary operational vulnerability is created by relying on a single IT system?
- Single failure point
- Extra capacity
- System redundancy
- Dual backup
-
What is the primary aim of business continuity planning?
- Maximising annual sales
- Increasing share price
- Reducing staff turnover
- Maintaining essential operations
-
What term describes preparing internal staff to take over senior roles?
- Scenario mapping
- Succession planning
- Market penetration
- Quality assurance
-
Which risk is primarily reduced by effective succession planning?
- Natural floods
- Staff loss
- IT crashes
- Import tariffs
-
Which risk deserves highest priority for a firm in a flood zone?
- Website downtime
- Minor staff absence
- Facility destruction
- Stationery shortage
-
A firm estimates a 10% chance per year of a fire that would close its only factory for 3 months. What is the expected number of months lost per year from this risk?
- 10 months per year
- 0.1 months per year
- 0.3 months per year
- 3 months per year
-
What is an effective example of digital risk mitigation?
- Staff demotion
- Increased borrowing
- Off-site backups
- Higher dividends
-
How can a firm mitigate the risk of depending on one salesperson?
- Lowering commission rates
- Stopping all sales
- Spreading client contacts
- Sacking the employee
-
What is a major limitation of business continuity plans?
- Guaranteed profits
- Instant execution
- High preparation cost
- Zero failure rate
-
Why might succession planning be criticised by managers?
- Instant promotions
- Zero training time
- Inexperienced successors
- Excessive liquidity
-
How should a firm handle a low-probability, catastrophic risk?
- Increase borrowing
- Cut marketing budget
- Ignore completely
- Contingency and insurance
-
What is the main purpose of business scenario planning?
- Guaranteed forecasting
- Reducing tax bills
- Preparing flexible responses
- Eliminating all debt
-
Which risk combination is most relevant for a technology business?
- Mining and oil
- Crop and weather
- IT and regulation
- Farm and drought
-
What is a key drawback of general risk mitigation strategies?
- Eliminating all risk
- Incurring extra costs
- Guaranteed market share
- Instant revenue growth
-
Which action best protects digital data against a head office fire?
- Paper filing systems
- Deleting old files
- Off-site data storage
- Local server upgrade
-
A firm's warehouse in a coastal area faces a 5% annual chance of storm damage costing 2m. What is the expected annual loss from storm damage?
- 400,000 per year
- 10,000 per year
- 100,000 per year
- 2,500,000 per year
-
How best can a firm protect finances against a natural disaster?
- Cutting staff wages
- Stopping advertising
- Insurance and continuity
- Selling fixed assets
Related quizzes
- Corporate objectives and mission Quiz · 3.1.1 · 20 questions
- Corporate strategy and SWOT analysis Quiz · 3.1.2 · 20 questions
- Corporate strategy and PESTLE analysis Quiz · 3.1.3 · 20 questions
- Objectives and problems of growth Quiz · 3.2.1 · 20 questions
- Mergers and takeovers Quiz · 3.2.2 · 20 questions
- Organic growth Quiz · 3.2.3 · 20 questions
- Small business survival Quiz · 3.2.4 · 20 questions
- Time-series analysis and sales forecasting Quiz · 3.3.1 · 20 questions
- Investment appraisal Quiz · 3.3.2 · 20 questions
- Decision trees Quiz · 3.3.3 · 20 questions