Interview Questions: Risk Management
Definition: Risk represents an uncertainty that can either positively or negatively impact the achievement of business goals. Risk Management is the process of recognizing, evaluating, and analyzing those risks to reduce the occurrence of, or minimize the impact of, adverse events or to identify potential opportunities. Effective risk management can improve responsiveness to critical events and the information gathered can help improve strategic decision making.
The statements below may be used in your job interview as measures of your "Risk Management" skills. There are steps you can take to measure or improve risk management skills.
Evaluates Risk
- How do you use risk management to be more effective in identifying and implementing projects?
- Risks have consequences and likelihoods of occurrence. How do you assess risks considering these factors?
- How would you use risk management to ensure smooth operations?
- Explain how you would evaluate the probability of a risk event occurrence.
- Can you give an example of how the risk management information is used?
- Describe how you would use risk management to make better strategic decisions.
- How would you set or determine the risk tolerance of the company?
- Explain how you would evaluate the impact of certain events on the attainment of corporate objectives.
- How would you identify what actions the organization is willing to take?
- Explain how you would use risk management to remain in compliance with regulations.
Risk Analysis
- Do you perform regular risk analyses to minimize adverse outcomes?
- Describe how you would quantify current business practices to make better informed decisions?
- Explain how you would prioritize the risks to determine the most pressing needs?
- How did you evaluate risks against acceptable risk levels?
- How do you use Monte Carlo Risk Simulations and decision analytics to create the best possible strategic decisions?
- How would you conduct an internal audit of risk assessments?
- How do you prioritize risks to act on critical issues first?
- In your previous position, did you determine which were the serious threats?
- Do you prioritize risks based on probability of occurrence and possible impact to the company?
- Have you gathered information regarding potential risks?
- Have you previously performed a risk analysis?
Risk Awareness
- In auditing the work of another department, describe how you perceive the risks of different work tasks and activities?
- Are you aware of process safety management?
- Do you understand the possible financial risks of different risk events? Explain.
- Do you have the knowledge and skills to accurately identify risks in the workplace? Explain.
- How do you accurately perceive potential risks in the workplace?
- How would you identify the most significant risks from business operations?
- Can risks represent a threat or an opportunity? Explain.
- Are you aware of the financial implications of certain risks?
- Explain how you would accurately perceive potential risks in the workplace and initiates preventative measures.
- Explain how you would work to meet regulatory compliance.
Determines the Consequences
- How would you determine the potential outcome of adverse risk events?
- Explain how you would determine if the level of risk is tolerable.
- Give an example of how you would determine the impact of specific risks on finances?
- How would you determine the impact of specific risks on reputation?
- How do you anticipate the consequences of different potential risk events?
- Have you looked for opportunities to turn a risk event into an advantage for the company? Explain.
- How would you accurately determine appropriate risk levels (i.e., levels of acceptable risk)?
- Can you determine the impact of specific risks on marketplace? Explain.
- How do you seek to capitalize on risks?
- Can you determine the impact of specific risks on infrastructure? Explain.
- Have you recognized the potential financial impact of specific risks?
- Have you recognized the potential impact of systemic risks? Explain.
Design Initiatives
- How would you create a risk management strategy for the organization?
- How do you create a risk management strategy for the department?
- Have you developed policies for risk management?
- Describe how you would create a dynamic and responsive enterprise risk management processes.
- Explain how you would create a risk profile for projects and teams.
- Have you designed risk management activities that supported the success of the company? Explain.
- Have you developed policies to address risk situations in the workplace?
- How would you align risk management activities with existing processes?
- Have you designed risk response activities that were proportionate to the level of risk? Explain.
- How do you determines the proper tools to efficiently manage the risk?
- How would you determine a proportional response in relation to the level of risk?
- How would you establish the context for risk management activities?
Manages Risk
- Did you ever effectively transfer risk? (Insurance, Outsourcing)
- How would you encourage employees to accept risks as needed?
- Have you worked effectively to avoid risk?
- How would you base decisions on patterns found in fluid/changing information?
- How do you implement strategic risk management in an objective and tactical way?
- Have you had a chance to effectively mitigate risks?
- How do you effectively manage risk for the department?
- Explain how risks could be viewed as potential opportunities for profit.
- Explain how you would seek to maintain the long-term viability of the Company through effective risk management.
Mitigates Risk
- Do you know how to obtain desired results with minimal losses? Explain.
- How do you ensure all components of risk management are in place?
- Do you use data from the purchasing department to anticipate possible supply chain risks?
- Explain how risk management increases business resilience.
- Do you take steps to minimize the impact/damage of the risk events?
- Have you used financial data to mitigate financial risks?
- How do you minimize operational setbacks and delays?
- Have you taken steps to reduce the occurrence of the risk events?
- How would you implement strategies to mitigate risks?
- How do you minimize the increase in costs due to global events or supply chain issues?
- How do you take steps to contain the costs of responding to such events?
Controls Risk
- Explain how you would establish controls over the process to better manage risks.
- Explain how you would help subordinates to recognize that small changes may snowball into major events?
- Can you determine the amount of deviation from the plan that will be tolerated?
- How would you implement changes to reduce the chances of critical incidents in the future?
- How would you adopts a risk-based approach to establishing systems of internal controls?
- How would you develop appropriate strategies to minimize risks?
- How can you ensure that any risky decisions taken are based on informed decision making?
- Are you aware of appropriate actions to minimize risks?
- Have you sought to reduce uncertainty (risks) in the supply chain?
Embraces Risk
- Can you turns risks into opportunities for advancement?
- How would you identify opportunities that may be created by taking specific risks?
- Do you take calculated risks by effectively recognizing and managing them?
- How would you seek specific risks that will create opportunities to advance the department/company?
- How would you reward risky ideas that might yield significant benefits?
- Can you identify and mitigate risks while making informed, strategic decisions? Explain.
- Explain how you could seek to add value to the company by embracing risk.
- How would you turn risks into opportunities?
- How do you add value to the organization through acceptance of certain risk?
Monitors Risk
- Describe how you would use actionable data and analytics to improve risk tolerance?
- Do you perform monthly risk management assessments?
- How do you monitor risk events and notify appropriate stakeholders?
- Explain how you would track and monitor incidents that may increase the risk of adverse consequences.
- Do you conduct regular audit of the risk management framework?
- How do you monitor the effectiveness of risk management strategies?
- How would you track risks in a project?
- Do you monitor enterprise risk management activities for their impact and effectiveness on mitigating risks?
Risk Response
- How would you create continuity plans?
- How do you effectively respond to critical situations to reduce potential for losses?
- How do you respond appropriately to unexplained or unanticipated events?
- How do you avoid maintaining the status quo (or standard operating procedures) when addressing new and influential situations?
- How would you create contingency plans?
- How do you reduce risk to a more manageable level?
- Are you able to adapt quickly to changing situations?
- Can you create a level of resilience in the organization through risk management?
- Explain how you would decide what actions will be taken.
- How would you identify the controls needed?
Responsibilities
- Have you used risk data to generate insights and drive strategic decisions?
- Are you concerned about process safety management?
- Were you responsible for regulatory, strategic, operational and project risk management in your former position?
- How have you sought to increase safety in the workplace?
- Explain how you would integrate risk management processes, data, and analytics across the company.
Supports the Process
- Are you committed to implementing rules and procedures to minimize risk? Give examples.
- Do you improve process safety where possible? Give examples.
- Have you integrated risk management into strategic decision making?
- How can you ensure employees are aware of potential impacts by increasing risk visibility?
- How do you provide support to managers involved in the risk management process?
- Have you ever had to work within constraints of the organization to provide adequate risk management?
Risk Communication
- How would you communicate the safety protocols?
- Have you presented regular/monthly reports to the audit committee?
- Have you promoted risk management competence throughout the organization?
- How would you fosters an awareness and a shared responsibility for managing risk at all levels of the Company?
- How do you establish roles, responsibilities, procedures in risk management?
Training
- Have you attended risk management seminars and conferences?
- Have you offered training to reduce safety incidents in the workplace?
- Did you create informative guides regarding potential risks and risky behaviors?
- Are you knowledgeable of our standard risk management principles?