ERM STRATEGY Flashcards
OBJECTIVE SETTING
1
Q
TOLERANCE
A
THE ACCEPTABLE RANGE OF VARIATION IN PERFORMANCE
2
Q
SIX EXTERNAL BUSINESS CONTEXT
A
PESTEL Political Economic Social Technological Environmental Legal
3
Q
Risk Capacity
A
Maximum allowed risk
4
Q
Risk Appetite
A
The desired level of risk
5
Q
Risk Capacity is usually > Risk appetite except for in
A
BANKRUPTCY
6
Q
Risk appetite can be expressed in
A
words (low/ High) and numbers #(volatility
7
Q
Low risk appetite relates to
A
Safety and compliance
8
Q
High Risk relates to
A
strategic, reporting, operations objectives
