Group 4

Question 1

Systematic and integrated approach to the mngt of total risk that a company faces.

Answer 1

ERM

Question 2

Firm-wide strategy to identify and prepare for hazard with a company’s finances, operation s, and objectives.

Answer 2

ERM

Question 3

In what year erm emerged as a concept and as mngt function w/in corp.

Answer 3

Mid 1990’s

Question 4

Emergence can be traced to two main causes:

Answer 4

1. Following a # of high-profile company failures and preventable large losses
2. Shareholder value are playing a greater role in strat planning.

Question 5

Company received as dividends and stock price appreciation as a result of better-decision making by mngt that ultimately results in a company’s growth in sales and profit

Answer 5

Shareholders’ value

Question 6

GRC?

Answer 6

Governance, Risk, and Compliance

Question 7

Structured way to align IT w/ buss. goals while managing risk and meeting all industry and government regulations.

Answer 7

GRC

Question 8

Why is GRC important? 3

Answer 8

1. Data-driven decision-making
2. Responsible operation
3. Improved cyber security

Question 9

Set of policies, rules, or frameworks that a company used to achieve its buss. goals.

Answer 9

Governance

Question 10

Buss. face diff. types of risk, including financial, legal, strategic, and security risks

Answer 10

Risk Mngt

Question 11

Act of ff rules, laws, and regulations. Applies the legal and regulatory requirements set by industrial bodies and also for internal corporate policies.

Answer 11

Compliance

Question 12

Duties and responsibilities of GRC

Answer 12

1. Implement security control
2. Documents and report control failures and gaps to stakeholders
3. Defines and documents buss. process responsibilities and ownership of the control in GRC tool
4. Identify and manage risk
5. Performs other related duties as assigned

Question 13

Corporate executive tasked w/ assessing and mitigating significant competitive, regulatory, and technological threats to an enterprise’s capital and earnings

Answer 13

CRO (Chief Risk officer/Chief Risk Mngt Officer/Risk Mngt Officer)

Question 14

CRO focuses on four broad categories of risk that face any org.

Answer 14

1. Compliance Risk
2. Operational Risk
3. Reputational Risk
4. Strategic Risk

Question 15

Involves the org. mechanism for identifying and meeting its responsibilities under the laws, rules and regulations that apply to it

Answer 15

Compliance Risk

Question 16

Includes elements such buss. interruption, labor issues, technology problems and vendor turnover that could impact its ability to transact buss.

Answer 16

Operational Risk

Question 17

Any element that could harm the org.’s brand image, recognition, standing and value among its employees, shareholders, customers and public at large

Answer 17

Reputational Risk

Question 18

Encompasses anything that could impact the org’s ability to execute strategy

Answer 18

Strategic Risk

Question 19

Has overall responsibility for monitoring and approving the risk policies and associated practises of the company.

Answer 19

Risk Committee

Question 20

Responsible for reviewing and approving risk disclosure statements in any public documents or disclosures.

Answer 20

Risk Mngt Committee

Question 21

Risk Mngt Committee shall what? (2)

Answer 21

1. Shall be appointed by and will serve at the discretion of the board
2. Shall consist of no fewer than three members