Governance

Question 1

Good corporate governance practice

Answer 1

Balance of power - CEO not the same as Chairman

Use of independent NEDs

Established committee - Audit, remuneration, nomination

Effective risk management and internal controls

Question 2

General principles of corporate governance for NFPs

Answer 2

Accountability
Consideration of stakeholders
Openness and transparency 
Appropriate board structure
Monitoring of performance

Question 3

Risk responses

Answer 3

High severity/low frequency -Transfer
High severity/high frequency - Avoid
Low severity/low frequency - Accept
Low severity/High frequency - Avoid

Question 4

Risk appetite

Answer 4

Reactors
Defenders
Analysers
Prospectors

Question 5

Breakeven analysis

Answer 5

Fixed costs/(Sales revenue per unit - variable costs per unit)