Chapter 2

Question 1

Characteristic of Risk Management Standard

Answer 1

Based On Enterprise Approach
Emphasis on Value Creation
Integration of ERM with Existing Process
Stress the importance of defining risk appetite
Importance of Risk Communication throughout the organization
require monitoring

Question 2

Risk Maturity Model

Answer 2

ERM Based Approach
ERM Process Management
Root Cause Discipline
Uncover

Question 3

ISO Principle

Answer 3

integrate with all organizational activity

Adoption of a structured and comprehensive approach

Inclusive of all shareholder perspective

Ability to dynamically react internal and external context

Based on Accurate, Comprehensive Information Sources

Ability to continuously Improved

Question 4

ISO Framework

Answer 4

Generic risk management framework that can integrate into management operational systems
Adopted Organizational Objective

1 Initially analyze the internal () and external risk (market condition and regulatory ) context that affects organizational objective and operation

2 Then made the policy based on how to identify the risk
how it will measure and
communicate it

3 Incorporate Accountability

4 Appropriate Resour ces (Skilled Person or staff or equipment )

5 Communication and reporting method

Question 5

Risk Criteria

Answer 5

Possible Consequences result from Risk

Likelihood of occurring

Measuring the Risk

ORganization Tolerance of Risk

Question 6

Risk Assessment

Answer 6

Identify the risk prioritize the risk in terms of the effect on organizational objective

Analysing the risk means level of risk and potential effect on organisation

Apply risk criteria to the risk involved

Question 7

Risk Treatment

Answer 7

Modifying

Avoid

Transfer

Retain

Alter the likelihood

Question 8

Solvency 2

Answer 8

Adequately Capitalised with Risk-Based Capital

Impose Higher Standard Of Risk Management and Governance

Increase Transparency for supervisor and public

Question 9

Basel II

Answer 9

Identifying Risk

Measuring Risk Exposure and Monitoring, corresponding capital need for ongoing process

Take steps to mitigate risk exposure

Report to Senior Management And Board

Question 10

Integrating Risk

Strategy

Answer 10

Making Decision
Formulating Strategy
Achieving Business Objective

Based on Current and Evolving Risk
Adapt to Condition Change
Align with organizational Mission Value and Core Value

Question 11

Framework

Governance

2 Culture

3 Performance

REview and Revision

communication and reporting

Answer 11

Board of Directors, General Partner

2 Encourage desired behaviour and promote awareness of expexted and tolerable level of risk
Adapt to change or achieving the organizational objective

Identify and prioritize the risk, assessing their severity
implementing responses