Bec1

Question 1

insuring against losses or entering into joint ventures ( buy downs)
is a response to potential risks known as

Answer 1

Sharing

Question 2

disposal of a business unit, product line, geographical segment
is a response to potential risks known as

Answer 2

Avoidance

Question 3

self insuring ( within my business without an insurance company) or tolerating the full exposure to risk التحمل الكامل 
 is a response to potential risks known as

Answer 3

acceptance

Question 4

diversification of product offerings rather than elimination of product offerings is a response to potential risks known as

Answer 4

reduction

Question 5

sourcing raw materials

is a response to potential risks known

Answer 5

an example of risk reduction

Question 6

discontinuing the product or replacing the raw material with a locally available product
is a response to potential risks known as

Answer 6

risk avoidance

Question 7

doing nothing

is a response to potential risks known as

Answer 7

risk acceptance

Question 8

purchasing insurance or buying purchase option to ensure raw material availability from other sources or obtain purchase commitment with penalty for nonperformance
is a response to potential risks known as

Answer 8

risk sharing

Question 9

its a CRIME if I forgot the five components of internal control

Answer 9

.Control environment
.Risk assessment
.Information and communication
.Monitoring
.Existing

Question 10

principles for C

EBOCA

Answer 10

.commitment to Ethical values and integrity
.Board independence and oversight
.Organizational structure
.Commitment to Competence
.Accountability

Question 11

principles of R

SAFR

Answer 11

.Specify objective
.analyze Risk
.potential for Fraud
.Assess changes

Question 12

principles of I

OIE

Answer 12

.Obtain and use information
.Internal communication
External communication

Question 13

principles for M

SO D

Answer 13

Ongoing/Separate evaluations

.communication of Deficiencies

Question 14

principles of E

CA T P

Answer 14

.select and develop Control Activities
.select and develop Technology controls
deploy through Policies and Procedures

Question 15

five components of ERM

GO PRO

Answer 15

.Governance and culture
.strategy and Objective-setting
.Performance 
.Review and revision
.information communicating and reporting(Ongoing)

Question 16

principles of G

DEVOS

Answer 16

.Desired culture
.Oversight
.core Values - tone at the top-
.Employees
.Structure

Question 17

principles of O

SOAR

Answer 17

.Strategies - what is the vision
.Objectives - why do we exist-mission
.Analyzes business context
.Risk appetite

Question 18

principles of P

VAPIR

Answer 18

.View - parent level
.Assess risk
.Prioritizes risk
.Identify risk(events)
.Responses -using "ARTS"

Question 19

principles of R

SIR

Answer 19

.assess Substantial change
.Improvement in ERM
.Reviews risk and performance - how did we do with managing risk -was it the right hedge

Question 20

principles for O

TIP

Answer 20

.Technology
.communicate risk Info
.reports on risk, culture, and Performance

Question 21

can/can’t be eliminated through effective application of portfolio theory

Answer 21

diversifiable risk can be eliminated through effective application of portfolio theory and under diversifiable risks there is : non-market risk, firm-specific risk, unsystematic risk

Question 22

can/can’t be eliminated through effective application of portfolio theory

Answer 22

non-diversifiable risk cannot be eliminated by the application of portfolio theory under non-diversifiable risks is market or systematic risk

Question 23

what is the effective interest (cost) of the loan

Answer 23

multiply the stated rate to the total loan to result total interest of the loan and then subtract bank compensation balance if any after that I divide the total interest of the loan by the effective amount received to result the effective interest of the loan