Business Risk management

Question 1

Risk management

Answer 1

• a process to identify, assess, manage and control potential events to provide reasonable assurance regarding the achievement of the company’s objectives

Question 2

risk catagories

Answer 2

• strategic
• operational
• reporting
• compliance

Question 3

TARA Framework

Answer 3

Transfer
Accept
Reduce
Avoid

Question 4

risk management cycle

Answer 4

• set strategy
• identify risks
• prioritise risk
• assess controls
• monitor and measure

Question 5

ways to measure risk

Answer 5

• impact - consequence and severity
• probability - likelihood or frequency
• risk registers or trafic lights

Question 6

Accountants and risk

Answer 6

• increasingly focusing on risk management
  Must be able to:
• identify all types of risk in their business
• manage those risks
• improve the strength of controls