8.2 Role of governance and compliance within a risk management context Flashcards
1
Q
An organisation’s risks are managed by its _____________.
A
employees
2
Q
Give some examples of common risk management governance and compliance issues.
A
- health and safety breaches (e.g. not waiting PPE)
- taking excessive financial risk
- non compliance with expenses policies
- fraud and theft of company assets
- diversity and discrimination issues
- breaching financial mandates
- not reporting serious breaches
- hiding control weaknesses
- sharing passwords
- taking data outside the organisation
- no declaring conflicts of interest
- accepting bribes
3
Q
What forms the “cornerstone” of effective governance and compliance?
A
Policies and procedures
4
Q
Why are effective policies and procedures important?
A
They ensure consistent behaviour across an organisation, aligning decision making.
5
Q
To support effective governance and compliance, implementation of risk management policies require the following:
- e________ of why they are needed
- clear and unambigious r_____ and r____________
- b_______ support
- communication and t________
- regular r______ and updates
A
explanation roles responsbilities board training reviews
6
Q
Why is an effective risk appetite framework important?
A
To ensure that employees understand the risks that may be taken and those which must not, and the roles of management and committees to take risks as needed.
