CHP 29: Risk Measurement & Reporting Flashcards
1
Q
Give 10 reasons why regular risk reporting is important within a business
A
FRAUD CRIME
- Financing (appropriate price, reserves, capital requirements)
- Rating agencies (to help determine appropriate rating)
- Attractiveness to investors
- Understand better (risks and their financial impact)
- Determine appropriate control systems
- Changes over time
- Regulator
- Interactions
- Monitor effectiveness of controls
- Emerging risk identification
