2.1 Regulatory frameworks

Question 1

Risk m________ and corporate g_________ are closely related. Effective risk management supports the internal c_______ of organisations and ensures they achieve their strategic o________.

Answer 1

management
governance
controls
objectives

Question 2

Effective risk management can support strategy development in organisations, helping b_______ and senior managers to develop strategies that are appropraite to the risk preferences of its s______________ and the opportunities and t_______ that exist within its operating environment.

Answer 2

boards
stakeholders
threats

Question 3

The UK was one of the first countries to implement formal corporate governance r_________ in response to various corporate s_______. The UK Corporate Governance Code is a cornerstone of corporate governance regulation and has influences codes in many countries.

Answer 3

regulation

scandals

Question 4

The corporate governance regulation is often based on a c_______ or e______ approach. This allows organisations who often differ in nature, scale and complexity, a degree of f_________ on how to comply with the regulation and how to apply the various p_______.

Answer 4

comply
explain
flexibility
principles

Question 5

In the UK, Corporate Governance Code, boards are expected to m______ and report on the p________ risks to which their organisation is exposed. They are also required to ensure that risk management arrangements for all other risks are appropriate and to review the e___________ of these arrangements on a r_______ basis.

Answer 5

manage
principal
effectiveness
regular

Question 6

The UK Corporate Governance Code applies to p______ limited companies listed on p_______ exchanges such as the London Stock Exchange. The corporate governance codes of most other c________ also apply to listed companies only.

Answer 6

public
premium
countries

Question 7

Many smaller, non-p_______ listed companies still comply with governance codes, though they are generally less c____________. The Q___ Governance Code is an example of such a code.

Answer 7

premium
comprehensive
QCA

Question 8

The OECD and EU have also produces corporate governance codes and r___________. These influence governance related risk m___________ practice in organisations around the world.

Answer 8

regulations

management

Question 9

The W______ B____ provides support and guidance for d___________ countries on corporate governance and risk management.

Answer 9

World Bank

developing

Question 10

Additional governance r__________ exist for financial i___________. These are often more prescriptive.

Answer 10

regulations

institutions

Question 11

Most countries have some form of c_________ governance regulation. Many are based on the UK Corporate Governance Code. This includes countries like I_______, K_____ and N______.

Answer 11

corporate
Ireland
Kenya
Nigeria