Chapter 2 Flashcards
1
Q
Bias in project appraisal
A
IT COME BACK
I insufficient care
T Technology
C Cycle
O Optimism
M Model erros
E Experience
B Business (other)
A Assumptions (Senior management and incorrect)
C Credit for other projects
K Key risks
2
Q
Risk culture
A
A POLLOCK
A Accountability
P Participation OL Organisational Learning L Leadership O Openess C Communication K Knowledge sharing
3
Q
Walker review on Corporate Governance
A
Comply or explain Strength of Board Independent risk committee Engagement between fund managers and Boards Remcos, disclosed publicly
4
Q
Avoiding bias
A
Check RIO
Checks and balances
Reference similar projects
Independent checking
Optimism bias (include)
5
Q
Central risk function
A
BRAM FAB2
B Big Picture RA Risk appetite M Monitor risk management process F Focal point for staff AB Advise Board Assess Business
6
Q
Internal Audit
A
I CAGE
Insurance cover Compliance (Reg/Laws) Accuracy of key spreadsheets Governance in check Error check
7
Q
Board responsibilities for Risk Management
A
GAMER
Guiding structure Approve internal controls Monitoring risks Ensure implementation Risk appetite
8
Q
Code of Conduct for internal policies
A
CRAPS
Compliance Record keeping Accuracy Proactive risk response Safe guard assets / Fraud
9
Q
Issues that should be communicated
A
Threats / opportunities Suggestions for mitigation Ideas --> increasing opportunities Defective products Operational failure
