Bus Prin and Prac Flashcards
To serve their organizations effectively, security managers must understand
Business principles
What type of training works best in the security industry
Mentoring
What is a concrete specification of products or services, level of quality, and other tangible aspects of the business, as well as a communication of business functionality and operational methods?
Mission
Which of the following is not one of the three standard, financial reports?
Notes to financial statement
What is NOT one of the three key reasons business people make unethical choices?
Greed
What is the first step in establishing a financial strategy?
Identify expected margins
What is a specific description of where the business will be in the long-term, and a general understanding of the business, its culture, and its future goals?
Vision
What is the foundation for training
Education
Who of the following is the author of the motivational theory which specifies two types of employees: Theory X employees who must be prodded to work, and Theory Y employees are naturally motivated?
Douglas McGregor
_______ bonds protect against employee dishonesty, while _________ bonds guarantee a contract.
Fidelity and surety
A ______________ is the cornerstone of an ethics program.
Mission statement
What is the most important aspect of personnel selection?
A face-to-face interview
How often should formal and informal performance appraisals be conducted?
Formal: Annually , Informal: Bi-annually
Relative to organizational objectives, what is “SMART”?
Specific, measurable, attainable, relevant, time-bound
_______________ budgeting is a process where only funds for justified expenditures are provided.
Zero-based
If a security function doesn’t result in more revenue than is possible without it, it should be
Reduced or eliminated
Which of the following is NOT a learning domain?
Intellectual
Which of the following BEST describes the document that tells how much money an organization generates (revenue), how much it spends (expenses), and the difference between those figures (net income)
Income statement
The practice of borrowing capital to purchase assets that can increase revenue is called which of the following?
Leveraging
In most cultures, this is the closest thing to a universal guideline or Golden Rule: to treat others the way one would want to be treated. This guiding principle works for both individuals and organizations. This BEST describes which of the following?
Business ethics
By using what kind of knowledge, security managers can organize their efforts in a way that best supports the overall vision and mission of their organization?
Business knowledge./ Principles
Who are those that are recognized as the effective security manager within the organization?
Those that are recognized within their organization as business partners
At some point a business must determine the type of product or service to sell and how to develop, deliver, and finance that output. To manage this process successfully, what managers and owners must employ?
Practices that support the goals of their business
What security managers must develop that define success and support business decisions?
Metrics
To be successful in business, what managers should understand?
The types of customers they serve, the financial requirements of the business, and ways to coordinate staff efforts
What kind of tool can be studied to determine whether the business processes accurately reflect the organizational strategy?
Key metrics and performance indicators
Feedback from what kind of tools allows an organization to change the implementation of the strategy or even shift the strategic focus itself?
Basing on the feedback from key metrics and performance indicators
What a business must understand and what need to create that support it
A business must understand its purpose and create management practices that support it.
What serves as the foundation for developing business processes
The organizational strategy.
What basically defines why the business exists and how it will maintain itself as a profitable, viable entity
The organizational strategy
While developing strategy, what is first step to understand?
The first step is to understand the business and where it needs to be in the future
How it is possible to tailor daily operations of a business to support the organizational strategy
By applying management principles
What kind of test the objective must pass through
A test called SMART (Specific, Measurable, Attainable, Relevant, and time‐bund).
To meet its objectives and implement its strategy, a business must pay attention to its primary resource. What is the primary resource?
Its people
What can help communicate the organizational strategy?
The vision, mission and objectives
What mission of the business specifies
The mission of the business specifies its types of products or services, level of quality, and other tangible aspects of the business and its plans
What is the most visible component of the HR department
Staffing
How an effective job requirements analysis can be done
Through candidate profiles, and effective interviews and evaluations
What kind of requirements the job requirements analysis must address
The job requirements analysis addresses both direct and indirect requirements. The direct requirements are those that the candidate must meet to understand and function in the position. The indirect requirements are skills that will increase the candidate’s likelihood of success
How staffing decision in an organization should be measured
Against a detailed job requirements analysis
What type of analysis should weigh which skills are most valuable for the position
The job requirements analysis
For the position filling in an organization, what elements the heads of security need to communicate to the HR staff responsible for recruiting
About the primary security function requirements and other skills requirements
How to appeal to the best candidates
To appeal to the best candidates, a company must impress them just as much impress the company
While conducting interview of candidate, what the interviewer should examine from a candidate
The candidate’s objective capabilities and subjective fit with the team the candidate would work with
What is the best way to recruit a good candidate
Internal recommendations
What the HR department must establish to outline the direction how business will be conducted at the organization
Must establish policies and procedures
When developing policies in an organization, what is useful to do
It is useful to work closely with the managers whose teams will be most affected by the policies.
What can help to prevent confusion within the organization
Clearly articulating company procedures
What should reflect the ideal functionality of the organization
The policies and procedures
What policies cover in an organization
Policies cover items that the organization monitors and expects employees to confirm to.
What procedure deal in an organization
In an organization, procedures deal with specific items‐for example, how an employee should handle setting up vacation time
What nature of training help employees to do their jobs better
Internal training
The metrics for evaluating employees should align closely with what element of the organization
With the organizational strategy
What employers must to do to aid employee development and retention
Employers must review and reward employee performance and provide training mechanisms for employee growth
Why companies use performance metrics and training modules
To foster employee development
How employees should be measured
How they do their current jobs and how well they contribute to the growth of the company as a whole
What is the second most valuable resource in an organization after its employees
Corporate knowledge
What can enable one department to learn from the processes, technologies, and ideas of another?
Cross‐unit knowledge sharing
What kind of difficulties a company might face if its growth is funded from internal cash reserves?
That could limit the ability of an organization to pay bills if costs exceed revenues
How a company can improve margins
It can reduce costs or increase the price of its product or service
What is possible to develop from the financial analysis
It is possible to develop budgets and set expected goals for revenue or return on investment (ROI).
What is the basis of financial management
Understanding the accounting principles used in generating financial reports.
Through what management practices in an organization are largely expressed
Through human resource management, knowledge management, and business structure
In an organization, if the organizational strategy emphasizes volume over profitability, then what should be metrics of measurement?
An important metric will be growth in revenue
What is the initial step in determining right structure for an organization
The initial step is to identify the essential business units
Central knowledge systems can be used as a tool of measurement and what it enables us to do in the organization
It enables an organization to identify problems and spot opportunities to cut costs, increase efficiency, or expand the business
What can be the metrics to identify how well employees are doing their current jobs?
Metrics for assessing how well employees are doing their current jobs include:
1‐work quality,
2‐ performance on time,
3‐ performance within budget,
4‐ meeting of other requirements of the position
What can be the metrics for assessing employee’s overall contribution to the company?
Metrics for assessing employee’s overall contribution to the company include:
1‐extra sales, extra hours, and work on several projects,
2‐ work on tasks outside the position requirements,
3‐ contribution toward improvements in the business process,
4‐ leadership.
How to make financial decisions and project returns
Through analysis of financial statements
Through analysis of financial statements. What is the purpose of GAAP
The purpose of GAAP is to establish and maintain a standard for financial reporting that can be used across all organizations
What are those three financial reports or statements have become accepted as standard?
The income statement, balance sheet, and statement of cash flows
What are the costs included in the costs of goods
Costs of goods sold include the cost of creating a product or service, accounting for materials, labour, and other costs
What the balance sheet summarizes
The balance sheet summarizes an organization’s investing and financing
When the shareholders are accountable for the extended liability
If the liabilities of an organization far outweigh the assets, then shareholders are accountable for the extended liability
What do you mean by retained earnings
Retained earnings equal the amount of net income that is reinvested in an organization.
How it is possible to determine what a company owns and what it owes in the short term and long-term
Through understanding the asset and liability mix
What is the equation of balance sheet
The equation of balance sheet: asset equal to liabilities plus shareholder equity
How accumulated depreciation can be defined
Accumulated depreciation defines as buildings and equipment age, they begin to lose value. The loss of value with each year is captured in accumulated depreciation to more accurately reflect the book value of an asset
What kind of cash flow can be found in a cash flow statement
The cash flow statement shows:
1‐ net operating cash flow,
2‐ net investing cash flow,
3‐ financial cash flow
What financial tool provides insight into the company’s use of profit to increase shareholder equity
The balance sheet
What is called leveraging
The practice of borrowing capital to purchase assets that can increase revenue is called leveraging
Name the different measures of margins
There are different measures of margins which are:
1‐ gross profit margin,
2‐operating margin,
3‐ net profit margin
What is the difference between return on assets and return on equity
Return on assets (ROA) measures how well a company makes profit on assets it already owns; return on equity (ROE) measures a company’s effectiveness at using loans to generate profit
What the operating margin demonstrates in a company
In an organization, operating margin demonstrates the company’s overall operating efficiency in producing and selling a product
When it can be said that the company is more efficient to producing a product
When the higher the gross profit margin
When an organization is more profitable
When the larger the margin of net income
What are the two earning related ratios are commonly examined in financial analysis
Two earning related ratios are commonly examined in financial analysis which are:
1‐earning per share (EPS),
2‐ price to earnings (P/E).
What can be helpful for comparing performance against expected values in an industry or against an organization’s historical performance?
The ratios of financial statements
What is risk
Risk is an estimate of the probability that investors will gain or lose money
What is return
Return is the amount of money an investment choice will give back to an investor
How it is possible to identify where cash is being generated to cover business operations
By understanding basic inflows and outflows of net operating cash flow, net investing cash flow and financing cash flow.
Which ratio is useful in determining whether an organization is fairly valued and also used to value private shares If an investor is thinking of purchasing an interest in a private organization?
The price to earnings ratios
What is the primary limitation of financial statement analysis
It does not directly consider changes in market conditions
While doing the financial risk analysis what are the risk rations are used
In the financial risk analysis, several risk ratios are used which are:
1‐ current ratio,
2‐ quick ratio,
3‐ debt to equity ratio
What are the limitations of financial statement analysis
The limitations of financial statement analysis are:
1‐ it does not directly consider changes in market condition,
2‐all organizations operate differently,
3‐ all organizations target different markets,
4‐ the financial ratios are derived from numbers presented in financial reports, and those report must be accurate for the ratios to have any meaning.
What may be the cause for continued declined in profit margin?
May be a result of poor economic conditions rather than poor company operations
Which ratios examine the company’s ability to cover short‐term obligations
If the current ratio is greater ratio is greater than one, the company has the ability to cover all its current liabilities with its current assets. Current ratio
Which ratio is also called as acid test
The quick ration is also known as the acid test
What the financial analysis basically focuses
Financial analysis focuses on whether a company will have the ability to cover expenses and operating costs in the near term as well as long term.
What is the more practical strategy for developing budget
A more practical strategy for developing budget is a combination of both where the lowest level of input will occur at the divisional or department level so that executive management can determine a realistic budget that is in line with the overall financial objectives of the company.
What businesses need to generate to meet budget requirements
To meet budget requirements, businesses often need to generate a certain amount of revenue as well as limit spending to predetermined amount
What is one of the main purpose for understanding financial accounting and financial analysis?
To establish budgets
What the term management system refers
The term management system refers to the organization’s method of managing its processes, functions, or activities
How any financial strategy must be implemented and overseen to be effective
With appropriate controls
At department and unit levels, how budget items are listed
Budget items are listed in greater detail
The budget of a company must be aligned with what
With the company’s financial strategy
How the return on the implementation of an effective security countermeasure can be measured
By applying efficiency versus cost, or cost versus benefit, ratio to show the long‐range cost savings to the company. Also in some cases the insurance premiums are lower when risk decreases
The implementation of financial strategy depends greatly on what
Depends greatly on clear communication of the strategy, it purposes, and its expected results
Write the equations of ROI
ROI=Investment value at end of period/ investment value beginning of period‐1;ROI= Initial investment plus interest earned (or lost)/Initial investment‐
What is the benefit by communicating the strategy to employees, investors, vendors, suppliers, and other stakeholders
It boosts confidence and makes it possible for all to focus on creating success from the strategic direction
What is the effective way to compare the desirability of different ways of spending
Calculating the return on investment (ROI)
What is the effective way to set value of line items
An effective way to set the value of line items is to look at each budget expense as an investment and then calculate the expected return on that investment. In other words, one looks at the benefit of the investment divided by the cost‐in simpler terms, cost/benefit.
What is zero‐based budgeting
Zero‐based budgeting is a process wherein funds are placed in a budget only to extent that planned expenditures are justified in detail
What tool provides a factual basis for decision making and a system for continual improvement?
A management system
How a management system helps to an organization
Management systems are tools to help an organization meet its goals, whether in terms of quality, environmental concerns, safety, security, preparedness, or continuity
The most management system is based on which model
Based on the plan‐Do‐Check‐Act (PDCA or Deming Cycle) model.
Which are the really issues of making the organization successful
Management will better understand security issues, and security professionals will better understand management issues, which are really the issues of making the organization successful
What a management systems standard is likely to lead
Some specific outcomes that a management systems standard is likely to lead to include better organizational performance through improved capabilities, strategic alignment of improvement activities at all levels of the organization, the flexibility to react quickly to opportunities and a changing environment and optimization of resources.
How the process should be approached in an organization
From a business point of view with a continual improvement perspective
How it is possible to focus on problems that are manageable and for which one can effectively develop a system
By understanding and prioritizes the issues most important to the organization
What is emphasized by plans for response management programs
Reducing an incidents impact and quickly returning to full operation
What state and constitute a commitment to the protection of critical assets as well as commitment to continuous improvement
The security policy
. Protecting an organization’s assets is a daunting task. The business world, the security arena, and life itself are changing at lightning speed. So what are the major factors influences on how security professionals must perform their mission
Globalization, information technology, instant communications, complex and a symmetric threats, public opinion, mergers and acquisitions, conglomerates and partnerships, and regulation all have a major influence on how security professionals must perform their mission
In larger view of assets protection, what type of assets a security professional should consider to protect?
The larger view of assets protection, however, also considers intangible assets, such as an organization’s reputation, relationships, and creditworthiness
When the greatest protection of assets occurs
The greatest protection of corporate assets occurs when an appropriate mix of physical, procedural, and electronic security measures is in place in relation to the assets being protected. This creates an effective defense‐in‐depth asset protection program
As a security professional how we should balance security costs while protecting the assets of an organization?
Need to balance security costs with the benefits of protective measures employed
While designing asset protection program, as a security professional what type of additional aspects need to be considered
However, several additional aspects of assets protection emerged as well: Both tangible and intangible assets must be considered, a key objective is maintaining smooth business operations, post‐ incident business or mission continuity is an important element, both the current and future risk environments must be considered, providing a safe and healthy environment should be factored in, liability reduction/management is an important component.
While designing asset protection for an organization what is essential to know?
What needs to be protected
