Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CIA Part 1 Jan - May 2025 > 4. Risk Management (10% 12 MCQs) > Flashcards

4. Risk Management (10% 12 MCQs) Flashcards

1
Q

Section E - Proficient

Risk Management Concept (Fundamental)
Risk - Definition

Risk Management Process

A

Risk: Possibility of events impacting the organization, measured by impact and likelihood.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Section E - Proficient

Risk Management Concept (Fundamental)
Risk Management - Definition

Risk Management Process

A
  1. Risk Management (RM): Process to identify, assess, manage, and control events to ensure organizational objectives.
  2. Standard 2120 – RM: IA evaluates and improves the RM process.
  3. RM: Can be formal or informal.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Section E - Proficient

Risk Management Concept (Fundamental)
Risk Management Process - Definition

Risk Management Process

A
  1. Identification of Context
  2. Risk Identification
  3. Risk Assessment & Prioritization
  4. Risk Response
  5. Risk Monitoring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Section E - Proficient

Risk Management Concept (Fundamental)
Responsibility for Aspect of Org RM

Risk Management Process

A
  1. RM: Key responsibility of management and the Board.
  2. IA Assurance: Reviews and recommends improvements.
  3. IA Consulting: Identifies, evaluates, implements, and manages methods and controls.
  4. Board Role: Determines IA’s RM role based on culture, competence, and local conditions.
  5. IA Role: Defined in the Charter.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Section H - Basic

Role of IA in RM

Risk Management Process

A
  1. Standard 2120.A1: Assess alignment, risk identification, responses, and communication.
  2. Standard 2120.A2: Evaluate fraud risk and management.
  3. IG 2120: Understand RM framework, assess risk maturity, plan audits, and report issues.
  4. Implementation: CAE assesses and discusses RM, performs gap analysis, ensures timely action, and reviews Board minutes.
  5. Conformance: Charter, Audit Plan, Meeting Minutes, IA Risk Assessment.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Section E - Proficient

Risk Management Concept (Fundamental)
Risk Management in Consulting

Risk Management Process

A
  1. Performance Standard 2120.C1: Address risks per engagement objectives.
  2. Performance Standard 2120.C2: Incorporate consulting knowledge.
  3. Performance Standard 2120.C3: Avoid management responsibilities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
ERM - Definition & Concepts

COSO Framework - ERM Overview

A
  1. Culture: Values influencing risk management.
  2. Capabilities: Skills and resources for risk.
  3. Practices: Methods for managing risks.
  4. Strategy: Aligning risks with goals.
  5. Performance: Managing risks to create value.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
ERM - Role & Responsibilities

COSO Framework - ERM Overview

A
  1. Board: Provides oversight via committees (e.g., audit, risk, governance).
  2. Management: Manages risk and achieves objectives daily.
  3. Risk Officer: Centralizes and coordinates risk management.
  4. Three Line Model:
    * First: Risk owners.
    * Second: Support functions (e.g., Risk Officer).
    * Third: Assurance functions.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
COSO ERM Framework

COSO Framework - ERM Component & Limitations

Enterprise Risk Management

A

A set of principles organized into 5 interrelated components.
* Governance & Culture - Mission, Vision & Core Values
* Strategy & Objective Setting - Strategy Development
* Performance - Business Objective Formulation
* Review & Revision - Implementation & Performance
* Information, Communication, & Reporting - Enhanced Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
COSO ERM Components

COSO Framework - ERM Component & Limitations

Enterprise Risk Management

A

A set of principles organized into 5 interrelated components.
* Governance & Culture -
1. Exercises Board Risk Oversight
2. Establishes Operating Structure
3. Defines Desired Culture
4. Demonstrates to Core Values
5. Attracts, Develops & Retains Capable Individuals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
COSO ERM Components

COSO Framework - ERM Component & Limitations

Enterprise Risk Management

A

A set of principles organized into 5 interrelated components.
* Strategy & Objective-Setting
6. Analyzes Business Context
7. Defines Risk Appetite
8. Eveluates Alternative Strategies
9. Formulates Business Objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
COSO ERM Components

COSO Framework - ERM Component & Limitations

Enterprise Risk Management

A

A set of principles organized into 5 interrelated components.
* Performance
10. Identifies Risk
11. Assesses Severity of Risk
12. Prioritize Risks
13. Implements Risk Responses
14. Develops Portfolio View

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
COSO ERM Components

COSO Framework - ERM Component & Limitations

Enterprise Risk Management

A

A set of principles organized into 5 interrelated components.
* Review & Revision
1. Assesses Substantial Change
2. Reviews Risk & Performance
3. Pursues Improvement in Enterprise Risk Management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
COSO ERM Components

COSO Framework - ERM Component & Limitations

Enterprise Risk Management

A

A set of principles organized into 5 interrelated components.
* Information, Communication & Reporting
1. Leverages Information & Technology
2. Communication Risk Information
3. Reports on Risk, Culture & Performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
ERM Limitations

COSO Framework - ERM Component & Limitations

Enterprise Risk Management

A
  1. Faulty Judgment
  2. Cost-Benefit Considerations
  3. Simple Errors
  4. Collusion
  5. Management Override
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
Principles

ISO 31000 Framework - Risk Management

A
  1. Integrated: Covers all activities.
  2. Structured: Organized and comprehensive.
  3. Customized: Tailored to objectives.
  4. Inclusive: Engages stakeholders.
  5. Dynamic: Adapts to change.
  6. Best Information: Uses all relevant data.
  7. Human Factors: Considers cultural aspects.
  8. Continual Improvement: Ongoing enhancement.
17
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
Framework Components

ISO 31000 Framework - Risk Management

A
  1. Leadership: Policies, resources, and accountability (Board & Management).
  2. Integration: Across all parts of the organization.
  3. Design: System setup.
  4. Implementation: Plan development and deployment, with adjustments if needed.
  5. Evaluation: Performance measurement.
  6. Improvement: Monitoring and updating
18
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
Process

ISO 31000 Framework - Risk Management

A
  1. Communication & Consultation: Awareness and feedback.
  2. Scope, Context & Criteria: Define boundaries and standards.
  3. Risk Assessment: Identify, analyze, and evaluate risks.
  4. Risk Treatment: Accept, avoid, reduce, share, or pursue risks.
  5. Monitoring & Review: Enhance quality and effectiveness.
  6. Recording & Reporting: Share results with stakeholders.
19
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
Responsibilities for Risk

ISO 31000 Framework - Risk Management

A
  • Board: Provides oversight.
  • Management: Sets risk attitude and handles risk assessment and decisions.
  • Auditor: Provides assurance.
20
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
Assurance approches/ responsibilities

ISO 31000 Framework - Risk Management

A
  • Key Principle Approach: Implementing risk management principles.
  • Process Element Approach: Establishing risk management elements.
  • Maturity Model: Uses Capability Maturity Model (CMM) and CMMI Development V2.0.
21
Q

Section F - Basic

RM Framework (COSO, ISO 31000 etc.)
Other Risk Framework

Turnbull Framework

A

Emphasizes controls, unlike ISO 31000.

CIA Part 1 Jan - May 2025 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions