13.2 Strategy risk and control

Question 1

Principle O of the UK Corporate Governance Code states that:

the board should establish procedures to manage r____, oversee the internal control framework, and determine the nature and extent of the principal risks the c______ is willing to take in order to achieve its long-term strategic o___________.

Answer 1

risk
company
objectives

Question 2

Wearden suggests a three-prong approach to strategic planning in order to change from the “status quo”:

S______ - setting the direction - there will inevitably be risks on all sides

R___ - the dangers along the route - different players need to consider the risks and impact, and then implement measures of control to project assets and deliver value

C_____ - intelligent parameters - control is a findamental aspect of stratgy

Answer 2

Strategy
Risk
Control

Question 3

Wearden sets out four methods of control beginning with the letter “A”, that companies can use to manage strategy:

A________ - methods to understand what is happening and why
A____ - oversight and professional review and reporting of what has happened
A__________ - the alignment of different levers of control
A_______ - accountability to stakeholders

Answer 3

Analysis
Audit
Assessment
Assurance