Nurse Executive Certification Practice Exam

Which of the following outlines the hierarchy of responsibility in a risk management plan?

1. Ending with the employees

2. Starting with external stakeholders

3. Beginning with the governing board

4. Not specifying any line of authority

The correct answer is: Beginning with the governing board

The hierarchy of responsibility in a risk management plan typically unfolds with the governing board at the top. This level of leadership establishes the organization's risk management policies and frameworks, ensuring they align with the overall strategic goals of the organization. By starting with the governing board, the plan emphasizes the importance of oversight and accountability at the highest level, which sets the tone for risk management practices throughout the organization. The governing board is responsible for understanding the risks the organization faces and ensuring a culture of risk awareness and management is promoted. Following the board, the next layers typically include executive leadership and management teams who implement the strategies and policies set forth by the board. This creates a clear chain of command and responsibility where each level of staff, including employees, understands their role in managing risks. In contrast, options that suggest a starting point from external stakeholders or ending with employees do not capture the established framework of authority and accountability necessary for effective risk management. Similarly, failing to specify a line of authority undermines the structured approach needed to effectively mitigate and manage risks within the organization.