Chapter 2: Domain Two: Business Operations Flashcards
Accounts Payable
Accounts on which an organizations owes money, including utilities or services acquired under informal agreements
Accounts Receivable
Amount due by customers for goods and services already delivered.
Activity
Process or set of processes undertaken by an organization (or on its behalf) that produces or supports products or services.
NOTE: Examples of such processes include accounting, call center, information services, manufacturing, distribution, an dother services.
Analytical Ethics
Attemps to examine ehtical concepts to achieve a deeper understanding of thier meaning and justifcation.
Applied Ethics
Active (not descriptive or prescriptive) type of ethics and appplying ethical concepts in specific business situations. This type of ethics invovles making specific judgements about right and wrong and prescribes types of behavior as ethical in the context of the activity.
Asset
Anything that a company owns or has title to that may provide a future economic benefit.
Auditor
A person with the competence to conduct an audit.
Balance Sheet
Summarizes an organization’s investing and financing.
Budget
Process/financial toll for planning where money is to be allocated for the year. It estimates costs and revenue.
Cash
Amount of currency a company has in its accounts, including cash savings, cash checking, and other currency deposits.
Cash Flow Statement
A statemnet that provides insight into how cash inflows and outflows affect an organization (Also called the statement of cash flows).
Code of Ethics
Statement of organizations shared values - Accepted concepts and beliefts related to the organization’s responsibilities and ethical ambitions.
Conformity
Fulfillment of a requirment.
Continual Improvement
Recurring process of enhancing the security , preparedness, and continuity (SPC) management system to achieve improvements in overall SPC management performance consistent with the organization’s SPC management policy.
NOTE: The process need not take place in all areas of activity simultaneously.
Cost Effectiveness
Producing good results for the money spent.
NOTE: To senior management, it is the primary factor in determining the size or existence of the asset protection program.
Current Ratio
Examines the company’s ability to cover short-term obligations.
Debt to Equity Ratio
Provides a long-term perspective in understanding a company’s financial health.
Descriptive Ethics
Attempts to explain or describe ethical events.
Disruption
An event that interrupts normal business functions, operations, or processes, whether anticipated (for example, a hurricane or political unrest) or unanticipated (for example, blackouts, terror attacks, technology failures, or earthquakes).
NOTE: A disruption can be caused by either positive or negative factors that disrupt normal functions, orerations, or processes.
Emergency
Serious, unexpected, and precarious situation requiring immediate action.
Ethics Program
Guides and supports employees in adhering to the code of ethics.
Evacuation
Organized, phased, and supervised dispersal of people from dangerous or potentially dangerous areas. (ASIS International Business Continuity Guideline, 2004).
Exercises
Evaluating management programs, rehearsing the roles of team members and staff, and testing the recovery or continuity of an organization’s system (such as technology, telephony, or administration) to demonstrate management competence and capability.
NOTE 1: Exercises include activities performed for the purpose of training and condition team members and personnel in appropriate responses with the goal of achieving maximum performance.
NOTE 2: An exercise can involve invoking response and operational continuity procedures, but it is more likely to invovlve the simulation of a response and/or operational continuity incident, announced or unannounced, in which participants role-play to assess what issues might arise, prior to a real incident.
Expenses
Costs of creating and delivering products or services.
Facility (Infrastructure)
Plant, machinery, equipment, property, buildings, vehicles, informatoin systems, transportation facilities, and other itmes of infrastructure or plant and related systems that have a distinct and quantifiable function or service.
Financial Statement
Created in accordance with generally accepted accounting principles to establish and maintain a standard for financial reporting that can be used across all organizations.
Financial Strategy
Management’s financial approach to determining the expected returns of its investments (including its departments and operations) and estimating and managing the relevant risks.
Generally Accepted Accounting Principles
(GAAP) Standards that determine how financial statements are prepared.
Gross Profit Margin
Provides insight into the efficiency of manufacturing a product by measuring profit based strictly on sales and costs of goods sold.
Income Statment
Tells how much money an organization generates, how much it spends, and the difference between those figures.
Interest Payable
Interest payments on loans extended to an organization.
Internal Audit
Systematic, independent, and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to whic the managment system audit criteria set by the organization are fulfilled.
NOTE: In many cases, particularly in smaller organizations, independence can be demonstrated by the freedom from responsibility for the activity being audited.
