ALL BEC Pneumonics Flashcards
ORC
3 Objectives of the IC Framework
Operations
Reporting “FACT”
Compliance
FACT= Fair, Accurate, Complete, and Timely
CRIME
5 Components in the COSO Integrated IC Framework
- Control Environment
- Risk Assessment
- Information and Communication
- Monitoring
- Existing Control Activity
EBOCA
Control Environment Principles 5 of 17 in total in the IC framework
“The Tone at the Top”
- Commitment to Ethics and integrity
- Board Independence and Oversight
- Organizational Structure
- Commitment to Competence
- Accountability
SAFR
Risk Assessment principles 4 of 17 in total in the IC Framework
“Make the entity SAFR” “EAR”
- Specify objectives
- Assess changes
- Fraud
- Risks “EAR”
How to do this?
- Event/Risk Identification
- Assess the risk
- Risk Response
OIE
Information and Communication Principles 3 of 17 in the IC Framework
“Awareness”
- Obtain and Use Information
- Internally
- Externally
Information must be “FACT”
Fair
Accurate
Complete
Timely
SO D
Monitoring principles 3 of 17 in the IC Framework
“Review”
- Seperate Evaluations
- Ongoing
- Deficiencies
CATPP
Existing Control Activities 5 of 17 principles for the IC Framework
“Existing” To mitigate the risk that F A C T will be true!
- Control
- Activities
- Technology
- Policies
- Procedure
FACT fair, accurate, complete, timely
CPER
ERM 1 objective and 4 components
Develop value-make it “CPER”
- Create
- Preserve
- Erosion
- Realization
ERM Themes set by COSO
Why: Mission / What: Vision / How: Core Values
- Culture- “How: Core Values”
- Capabilities
- Practice-applied at all levels
- Integration - “Why: Mission”
- Strategy - “What: Vision”
GO PRO with ERM
5 components of enterprise risk management (ERM)
- G overnance and Culture
- Strategy and O bjective Setting
- P erformance
- R eview and Revision
- Information, Communication, and Reporting (O ngoing)
DOVES
Governance and Culture 5 of 20 principles ERM Framework
- define D esired culture
- exercise board O versight
- demonstrate committment to core V alues
- attracts, develops and retains capable E mployees
- establishes operating S tructure
SOAR
Strategy and Objective-Setting 4 of 20 principles of ERM Framework
- evaluate alternative S trategies
- formulate business O bjectives
- A nalyzes business context
- define R isk appetite
VAPIR
Performance 5 of 20 principles of ERM Framework
- develops portfolio V iew
- Assesses severity of risk
- P rioritizes risk
- I dentifies risks (events)
- implements risks R esponses
What are the Risk Response Decisions?
- Avoid
- Reduce
- Transfer
- Self-Insurance
How do they do this? AARPs my own pneumonic for risk responses from management.
- Accept the risk
- Pursue the risk
- Share the risk
SIR
Review and Revision 3 principles of ERM Framework
- Assesses S ubstantial change
- Pursue I mprovement in ERM
- R eviews risk and Performance.
TIP
Information, Communication, and Reporting (Ongoing) ERM Framework
- Leverages info and Technology.
- Communicates risks I nformation.
- Reports on risk, culture, and P erformance.
ARC
The ARC that saves you from a flood of trouble Segregation of Duties
A uthority
R ecord Keeping
C ustody
DUNS
the 2 classifications of risk
“Diversifiable Risk is a non-market, firm specific risk.”
D iversifiable risk same as
U nsystematic risk
“Non-diversifiable Risk are systematic market risk that can not be mitigated by diversification.”
N on-diversifiable risk same as
S ystematic risk (market risk)
Get us “DUNS”
OWNES
5 criteria’s to meet to classify a lease as a finance lease (u own it)
- Ownership
- Written
- Net
- Economic
- Specialized
ESOC
Economic Order Quanity
EOQ Order Size
Annual Sales in units
Cost per Purchase Order
Carrying Cost (Denominator)
SOIL
Carrying Costs
- Storage
- Oppurtunity Cost
- Insurance
- Lost Inventory/ Spoiled/ Obsolete
WRITEN
Factors that shift the demand curve
- Wealth
- Related Good
- Income
- Taste
- Expectations
- Number of buyers
Shifts to the right good, shifts to the left bad
ECOST
Factors that shift the supply curve
- Expectations
- Costs
- Other goods
- Subsidies or taxes
- Technology
Shifts to the right good, shifts to the left bad
TIPS
Effect of inflation on investments
- Treasury
- Inflation
- Protection
- Securities
ISWEOT
SWOT
- Internal factors
- Strength
- Weaknesses
- External factors
- Opportunities
- Threats
