COSO 2004 ENTERPRISE RISK MANAGEMENT INTEGRATED FRAMEWORK

Question 1

PARTS OF THE FRAMEWORK:
Considering risks in strategy setting and driving performance

Answer 1

1.Concepts and Application
2. Viewpoints and operating structures

Question 2

ERM - ART OR SCIENCE?

Answer 2

BOTH

Question 3

ERM MANAGEMENT GUIDE

Answer 3

1. ADDING PERSPECTIVE TO THE STRENGTHS/WEAKNESS OF A STRATEGY
2. HOW WELL STRATEGY FITS IN WITH THE ORGANIZATION VISION AND MISSION
   3, HELPS MANAGEMENT FULFILL ITS ROLE

Question 4

FRAMEWORK FOR BOARDS TO DEFINE THEIR RISK OVERSIGHT RESPONSIBILITIES

Answer 4

1. CORPORATE GOVERNANCE - MISSION VISION
2. STRATEGY AND OBJECTIVE SETTING - STRATEGY DEVELOPMENT
3. PERFORMANCE -BUSINESS OBJECTIVE FORMULATION
   4.REVIEW AND REVISION - IMPLEMENTATION AND PERFORMANCE
   5.ENHANCED VALLUE - INFO, COMMUNICATION,REPORTING

5.

Question 5

BENEFITS OF ERM

Answer 5

1. INCREASING THE RANGE OF OPPORTUNITIES
   2IDENTIFYING AND MANAGING ENTITY WIDE RISK
2. INCREASING POSITIVE OUTCOMES AND REDUCE NEGATIVE SURPRISES
3. REDUCE PERFORMANCE VARIABILITY
4. IMPROVE RESOURCE DEPLOYMENT
   6.ENHANCING ENTERPRISE RESILENCE

Question 6

WHAT IS RISK RESILIENCE

Answer 6

THE ABILITY TO ANTICIPATE AND RESPOND TO CHANGE