3 - Risk Management and Control Flashcards
1
Q
What are the 4 risk control strategies?
A
Risk avoidance - discontinue activity
Risk acceptance - accepted or
unplanned as risk not identified
Risk transfer/sharing - insurance, another party assigned cost
Risk reduction - controls to reduce to acceptable level
2
Q
FRC guidance on risk management?
A
Board responsibilities
Exercising boards responsibility
Training
Monitor and review systems
3
Q
Risk assessment process?
A
Identify risks
Assess impact of the results
Assess likelihood of risk occurring
Priorities risks, assessing principal risks
Identify whether controls put in place mitigate risks
4
Q
Components of internal control?
A
Control environment Risk assessment process Control activities Monitoring Entity level controls
