Day 20 Flashcards
Dividend distributions represent:
Value Realization
MCQ-06256
What assessment techniques can be used to assess risk?
- Benchmarking
- Objective statistical data with estimable probabilities
- Subjective assumptions which take into account impact without probabilities
MCQ-00645
According to the COSO Enterprise Risk Management-Integrated Framework, uncertainty in Enterprise Risk Management refers to:
The state of not knowing how or if potential event may occur
MCQ-12465
True or False: ERM framework encompasses - Decreasing Inherent risk appetite
False
Inherent risk is the risk that exists when the company takes no action. ERM manages risk so that it aligns with the risk appetite
MCQ-09005
In ERM, when does Event Identification take place?
After developing objectives
MCQ-06490
Components of ERM: Governance and Culture
- Desired Culture
- Oversight
- Values
- Employees
- Structure
MCQ-06257
What ERM component is committed to attracting, developing, and retaining capable individuals?
Governance and Culture
MCQ-06259
Components of ERM: Strategy and Objective setting
- Evaluate alternative Strategies
- Objectives
- Analyze business context
- Defines Risk appetite
MCQ-06261
Define: Residual Risk
The risk that remains after MGMT has taken actions to mitigate negative events
MCQ-06149
Risk appetite has generally been exceeded when:
The likelihood and impact of negative events significantly exceed Residual Risks.
MCQ-06149
A company’s performance guidelines sets a lower limit of 3% unfavorable material usage variance for its production facility. What ERM principal aligns with this performance guideline?
Formulating business Objectives
MCQ-15782
According to COSO ERM, MGMT considers the following risks:
- Inherent risk
- Actual Residual Risk
- Target Residual Risk
Note: Unknown risk is not a specific consideration
MCQ-12447
How is statistical risk ranking methodology used?
The assessment of the severity of risk is contained within the Performance component
Assessing risk severity includes the likelihood of the risk occurring and the impact if it does occur
MCQ-14802