IRM Abbreviations & Key Terms

Question 1

COSO

Answer 1

Committee of Sponsoring Organizations

Question 2

ISO

Answer 2

ISO (International Organization for Standardization)

Question 3

RASP

Question 4

GRC

Question 5

FIRM

Answer 5

The term ‘impact’ is used to define how the event affects the finances, infrastructure, reputation and/or marketplace (FIRM) of the organization.

Question 6

SWOT

Answer 6

This will result in the identification of the strengths, weaknesses, opportunities and threats facing the organization. This is often referred to as a SWOT analysis.

Question 7

STOC

Answer 7

Core processes can be classified as strategic, tactical, operational and compliance (STOC). I

Question 8

4Ps

Answer 8

disruption caused by people, premises, processes and products (4Ps).

Question 9

ALARP

Answer 9

“ALARP” is short for “as low as reasonably practicable”

Question 10

IRM LILAC

Answer 10

Thefive indicators of positive safety culturedeveloped are:

Leadership– promoting a positive safety culture

Two-way communication– effective channels for top-down, bottom-up and horizontal communication

Involvement of staff– active employee participation

The existence of a learning culture– lessons learnt, communicated and improvements implemented

The existence of a just culture– movement from a blame culture to one of accountability, with care and concern for employees.

This has given rise to the acronym LILAC: Leadership, Involvement, Learning, Accountability and Communication.

Question 11

4E s & 5Es

Answer 11

explore, exit or expand, exploit and exist

Question 12

PCDD

Answer 12

Control Theory Preventative Corrective Directive Detective

Question 13

4Cs

Answer 13

Attitude to risk - Comfort, cautious, concerned and critical

Question 14

Double S Model

Answer 14

Sociability and Solidarity

Question 15

4 Cultural Types of Double S Model

Answer 15

Networked. Communal. Mercenary. Fragmented

Question 16

Risk Culture Aspects Model

Answer 16

.
This model identifies eight aspects of risk culture groupedwithin four themes:

Tone from the top
Risk leadership – clarity of direction
Dealing with bad news
.
Governance
Accountability – clarity of accountability
Transparency – and timeliness of risk information
.
Decisions
Informed risk decisions – how
well-informed
decisions are
Reward
– rewarding of appropriate risk taking
.
Competency
Risk resources
– status, resources and empowerment of the risk function
Risk skills
– embedding of risk management skills
.
This Risk Culture Aspects model is related to the Double ‘S’ model, in that the ‘Dealing with bad news
’,
Reward’ and ‘Risk Skills’ aspects have a greater impacton sociability, and the other five aspects are related to improvements in solidarity.

Question 17

FRC

Question 18

SOX

Question 19

OECED

Answer 19

The Organization for Economic Co-operation and Development (OECD)

Question 20

CSFSRS

Answer 20

There will be a wide range of stakeholders in a typical organization that can be summarized as CSFSRS, as follows: customers; staff; financiers; suppliers; regulators; society.

Question 21

The Nolan Principles of Public Life

Answer 21

Nolan principles of public life

1 Selflessness - Holders of public office should act solely in terms of the public interest and should not seek benefits for themselves, their family or friends.

2 Integrity - Holders of public office should not place themselves under any financial or other obligation to outside individuals or organizations.

3 - Objectivity In carrying out public business, the holders of public office should make choices on merit.

4 Accountability - Holders of public office are accountable for their decisions and actions to the public and must submit themselves to appropriate scrutiny.

5 - Openness Holders of public office should be as open as possible about all the decisions and actions that they take and give reasons for their decisions.

6 - Honesty - Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts.

7 - Leadership Holders of public office should promote and support these principles by leadership and example. These principles have been in place since 1995 but they appear to have come under considerable strain during the Covid-19 health crisis in the UK in 2020 with the award of contracts to high-profile donors to the Conservative Party and with little (and often no) due diligence. The box below is an extract from the guiding principles for risk management set

Question 22

AFERM

Answer 22

Association for Federal Enterprise Risk Management

Question 23

Risk Proximity

Answer 23

How close or how soon can a risk happen

Question 24

Risk Velocity

Answer 24

How fast a risk can impact an organisation once it occurs

Question 25

Risk Clockspeed

Answer 25

Slow where enough thinking time is available while Fast are at or close too real time