4.1 Risk management frameworks and standards

Question 1

Risk management is an activity that all d________ makers engage in, often intuitively.

Answer 1

decision

Question 2

In organisations, it is necessary to formalize risk management activity by creating a tangible r____ m___________ f__________

Answer 2

risk management framework

Question 3

An organisation needs a formal risk management framework to ensure that risks are managed in a c__________ manner by all decision makers, in accordance with the interests of the organisation and its s_______________.

Answer 3

consistent

stakeholders

Question 4

An organisation’s risk management framework consists of various policies, procedures, processes and activities to provide a coherent s________ for risk management activities and d_________.

Answer 4

structure

decisions

Question 5

A key element of any risk management framework is the risk management process. This is concerned with the i_____________, assessment, m____________ and control of risk.

Answer 5

identification

monitoring

Question 6

The practice of risk management took a major leap forward in 2009 with the publication of I__________. The international standard for risk management provides a set of internationally recognised principles and guidance on the practice of risk management in originations. The standard serves as a universal b_________ for risk management practice, helping organizations, irrespective of their market s_______ or business m_____, to improve the effectiveness of their risk management practices.

Answer 6

ISO31000
benchmark
sector
model

Question 7

ISO31000 was updated in 2___. The revised guidance reflects changes in risk e_______ and risk management practice.

Answer 7

2018

exposure

Question 8

National s________ and guidance documents on risk management are common. Many build on ISO 31000 to provide local context-specific guidance for organisations operating in specific c________

Answer 8

standards

countries

Question 9

The C___ ERM framework was updated in 2017 and is a complementary resource to ISO31000. The 2017 COSO ERM Framework emphasizes that although risk management is an important part of effective corporate governance and i_______ c_______, this does not preclude using risk management to help improve the strategic and operational performance of an organization.

Answer 9

COSO

internal control

Question 10

COBIT 5 provides a risk management framework for IT r____. The framework is business-oriented and links IT goals to business goals, providing example metrics and benchmark m_______ models to help an organization review and improve the effectiveness of its IT risk management activities.

Answer 10

risks

maturity