Enterprise Risk Management (M40) Flashcards
T/F
A benefit of enterprise risk management is that it helps the organization seize opportunities
TRUE
T/F
A benefit of enterprise risk management is that it enhances risk response decisions
TRUE
T/F
A benefit of enterprise risk management is that it improves the deployment of capital
TRUE
T/F
A benefit of enterprise risk management is that it insures that the organization shares all major risks
FALSE
This is only one way of responding to risk and this technique cannot be used for all risks, nor should it be
____ is the acceptable variation with respect to a particular organizational objective
Risk Tolerance
______ is the level of risk an organization is willing to accept
Risk Appetite
______ is the risk of an event after considering management’s response
Residual Risk
______ are events that require no risk response
Accepted Risks
_____ involves exiting the activity that gives rise to the risk
Risk Avoidance
______ involves no response to the risk
Risk Acceptance
______ involves managing a risk to reduce its likelihood or impact
Risk Reduction
______ involves sharing risk with another party
Risk Sharing
Probabilistic Models are used for ____
Risk Assessment
Process Flow Analysis is used for ____
Event Identification
Facilitated Workshops are used for _____
Event Identification
