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PC CBT > ERM > Flashcards

ERM Flashcards

1
Q

ERM Manual

A

A document outlining policies and procedures for managing risks and carrying out ERM processes at PC Limited, applying to all sub-functional areas within the ERM function.

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2
Q

Risk Appetite

A

A guide used to determine the acceptable level of risk at PC Limited,

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3
Q

PC Limited’s approach to measuring identified risks related to its business processes

A

Risk Assessment Approach

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4
Q

Four Risk Treatment Approaches adopted by PC Limited for risk treatment

A

Tolerate (Acceptance)
Treat (Reduce)
Transfer (Share)
Terminate (Avoid)

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5
Q

Risk Map

A

Illustrates the effect of implemented mitigation plans on gross risk, resulting in residual risk moving towards the bottom left-hand corner of the grid.

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6
Q

Quality Assurance and Improvement Program

A

Involves ongoing assessment and monitoring of GRC’s performance and effectiveness at PC Limited, covering all main aspects of quality assurance.

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7
Q

How often QAQC assessments are carried out

A

internal assessments conducted annually and
external assessments every three years.

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8
Q

PC Quality Assurance Review Tool

A

A key tool used to
- check the quality assurance of the GRC Function at PC Limited,
- documenting variance analysis results and
- defining next steps for each GRC team member involved in reviews.

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9
Q

Investigation Processes and Procedures

A

Established for conducting investigations into alleged incidents of bribery, corruption, fraud, and misconduct,

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10
Q

Whistle-blower Policy

A

Outlines the requirements for reporting whistle-blower complaints to the GRC Function at PC Limited.

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11
Q

Investigation Planning Phase

A

Includes
- protocols for information storage and sharing,
- report distribution lists at PC Limited. - Third parties need to be notified of certain allegations to be investigated.
> regulators,
> external auditors, and
> law enforcement agencies may

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12
Q

PC Risk approach is based on

A

likelihood ranking criteria provided in the ERM manual.

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13
Q

How is the level of risk obtained?

A

A combination of likelihood of occurrence and magnitude of impact

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14
Q

Approach adopted by PC Limited to improve risk management

A

Enterprise risk management (ERM)

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15
Q

How is the company risk apetite derived

A

derived from annual strategy/goal setting processes and based on strategic, operational, compliance, and reporting objectives.

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16
Q

Responsible for investigations processes and procedures with review and administration.

A

GRC Function and the Chief Compliance Officer

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17
Q

Risk is

A

The probability that the occurrence of an event may positively or
negatively impact the achievement of the organization’s objectives.

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18
Q

Four (4) key elements
of PC Limited’s ERM model:

A

a) Risk strategy and appetite;
b) Risk culture;
c) Risk governance; and
d) Risk management process.

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19
Q

Purpose of ERM manual

A

Sets out policies, guidelines and practices to be adopted in
managing risks and carrying out ERM processes.

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20
Q

Who grants exceptions to ERM policy

A

GCEO, ratified by Board

21
Q

Review and update of ERM takes place

A

every 2 years

22
Q

ERM Key result Areas

A

Enterprise Risk
- Identification
- Assessment
- Mitigation and Control
- Monitoring and Reporting

23
Q

ERM SIPOC Suppliers

A

Business Units

24
Q

ERM SIPOC Outputs

A
  1. Risk Register
  2. Risk Heat map/Assessment report
  3. Risk & Control Register
  4. Risk report
25
Q

Risk Register (SIPOC)

A

BU - Strategy & Action Plans - Risk Identification - BU/ERM/GRC

26
Q

Risk Heat map/Assessment report (SIPOC)

A

BU - Risk Ratingss - Risk Assessment - Risk Heat map - Audit /BU

27
Q

Risk & Control Register (SIPOC)

A

BU - Mitigation action plans - Risk mitigation - Control Register - Audit / BU

28
Q

Risk report (SIPOC)

A

BU - Info requirements - Monitoring & Reporting - Reports - ERM/Audit/GRC/BU

29
Q

PC Risk management strategy

A

Establish and sustain a
robust ERM model that is proactive and embedded in all processes to
ensure that responses to risks are effective and dynamic.

30
Q

Risk appetite is

A

The amount of risk PC Limited is willing to accept in order
to be in alignment with its strategic objectives.

31
Q

Risk appetite purpose

A
  • Guide to determine how much risk is acceptable;
  • A benchmark for key risk indicators;
  • Guide in strategy and goal setting process.
32
Q

ERM Action “I” means

A

Initiate

33
Q

ERM Action “C” means

A

Consult

34
Q

ERM Action “R” means

A

Recommend

35
Q

ERM Action “E” means

A

Endorse

36
Q

ERM Action “A” means

A

Approve

37
Q

ERM Action “IMP” means

A

Implement

38
Q

ERM Action “INF” means

A

Inform

39
Q

ERM roles include

A
  1. PC Ltd Board
  2. Board Audit OCmmittee (BAC)
  3. Management Committee
  4. HODs / Process owners / Project managers
  5. Risk & COntrol Function
    P26
40
Q

Risk three lines of defence

A
  1. Risk Management (BOD, BAC, MRC, Heads)
  2. Risk Oversight
  3. Assurance (Audit fn, External Audit, Regulators)
41
Q

Who doubles as the chief risk officer?

A

Chief compliance officer P32

42
Q

4 major components addressed by ERM Process

A
  1. Risk Identification
  2. Risk Assessment
  3. Risk Mitigation
  4. Risk monitoring and reporting
43
Q

2 Types of Risk Ranking Criteria used in PC Ltd

A

Likelihood and Impact (Non-financial & Financial)

44
Q

What are the risk likelihood factors used in PC Ltd.?

A
  1. Rare (Not expected) 1-19%
  2. Unlikely (little chance of 1 in 3yrs) 20-39%
  3. Possible (50% chancce in 3 yrs) 40-64%
  4. Likely (>50% chance in 3 yrs) 65-89%
  5. Almost Certain (at least 1 in 3 yrs) 90-100%
45
Q

Risk Impact criteria are:

A
  1. Insignificant
  2. minor
  3. Moderate
  4. Major
  5. Extreme
46
Q

The level of risk is a combination of

A

Likelihood of occurence and
Magnitude of impact

results in heat map - Hight, Medium, low

47
Q

Risk levels are

A

high - material influence on objectives - BOD, SMT
medium - influence short term objectives - BOD, SMT, Middle Mgt.
low - negligible influence - middle mgt

48
Q

RCSA means

A

Risk and control self-assessment

PC CBT (9 decks)

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