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Q22-3.5 Business Awareness > Organisational structure & Governance > Flashcards

Organisational structure & Governance Flashcards

1
Q

What are the 3 types of organisational structures?

A
  1. functional
  2. divisional
  3. matrix
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2
Q

What is a functional structure?

A

-divides the business into specialised functions
-group together expertise = more efficient

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3
Q

What is a divisional structure?

A

-number of different teams that each focus on an individual product, service or locations
-the division will have the resources it needs
-director usually at the top
-more autonomous

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4
Q

What is matrix structure?

A

-as well as working in their own departments, they will also work across teams and projects

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5
Q

What will the span of control vary on?

A

-the size of organisation
-type of work that individuals do
-the location of staff

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6
Q

What is a tall organisational structure?

A

-organised by function
-clear reporting lines
-manager has a narrow span of control
-decisions take longer

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7
Q

What is a flat organisational structure?

A

-wider span of control
-decisions can be made more efficiently
-staff ‘stagnate’ in their roles as their are few chances to move up

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8
Q

What is governance?

A

-a system that provides a framework for managing organisations
-identifies who makes decisions
-who it accountable for how an organisation behaves

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9
Q

What does ‘good governance’ mean?

A

-will have delegated authority for decision making to appropriate people
-will have a structure in place to support this
-will have controls to ensure an individual cannot go beyond their scope of authority

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10
Q

What does ‘good governance’ enable?

A

-enables board of directors and management to run a business legally, ethically and successfully for the benefit of all stakeholders

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11
Q

What is corporate governance?

A

-they must have systems in place to direct and control the way in which the business is operated
-includes setting strategic aims and objectives

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12
Q

Who is responsible for the governance of a business?

A

-the board of directors
-who are appointed by the shareholders

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13
Q

What is financial governance?

A

-how the business collects, manages and controls financial information
-allows you to monitor the operation of the business and identify where there may be financial risk

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14
Q

What is legal governance?

A

-must ensures that it complies with the necessary legislation and regulation
-implementing appropriate levels of authorisation with internal documented processes that must be followed

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15
Q

What is centralised control?

A

-means that decision making rests with the higher tiers of management

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16
Q

What is decentralised control?

A

-authority for making decisions is given to lower levels of management in the business

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17
Q

What is an advantage of decentralised?

A

-senior management can focus on key decisions and leave the day to day tasks to the team

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18
Q

What is a disadvantage of decentralised?

A

-lower level management may not have necessary skills to make ‘good decisions’
-make focus it on the team rather than the business

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19
Q

What is strategic or corporate level?

A

-at the top
-where decisions are made that affect the whole organisation
-long term

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20
Q

What is managerial level?

A

-decisions relate to the way that the business should go about achieving its goals

21
Q

What is operational level?

A

-tend to be shorter term and relate to the practical day to day operations of the business

22
Q

What is risk?

A

-the possibility of something happening that has not been planned

23
Q

What is uncertainty?

A

-refers to situations where the decision maker either doesn’t know the possible outcomes and/or the probability that they will occur

24
Q

What is business risk?

A

-a business’s vulnerability to factors that could decrease profits or cause the business to fail

25
Q

What are the types of risks?

A
  1. strategic
  2. financial
  3. operational
  4. cyber
  5. reputational
26
Q

What are strategic risks?

A

-arise from the decisions the directors of the business make about the business’s objectives or strategies

27
Q

What are financial risks?

A

-comes from change in the financial conditions in which it operates
-change in interest rates

28
Q

Examples of financial risks

A
  1. interest rates
  2. loans
  3. offering credit terms to customers
29
Q

What are operational risks?

A

-arises from the way in which it operates its business functions
-risk arising from people and processes

30
Q

What are the 5 types of operational risks?

A
  1. process
  2. people
  3. system
  4. legal and regulatory
  5. event
31
Q

What is process risk?

A

-there will be risks of loss inherent to the processes of a business

32
Q

What is people risk?

A

-risk arises from issues caused by the people who work for an organisation

33
Q

What is systems risk?

A

-increased risks that the systems could be used to process fraudulent transactions

34
Q

What is legal and regulatory risk?

A

-risk of loss resulting from an organisation failing to comply with legislation

35
Q

What is event risk?

A

-may be present due to an external factor or event that affects the business

36
Q

What are the causes of event risks?

A
  1. physical
  2. social
  3. political
  4. economic
37
Q

What are cyber risks?

A

-associated with financial loss, disruption or damage to an organisations reputation

38
Q

What are 8 examples of cyber risks?

A
  1. phishing
  2. malware
  3. ransomware
  4. distributed denial of service attack
  5. spyware
  6. keylogging
  7. password attack
  8. browser hijacking
39
Q

What is a reputational risk?

A

-threatens the name
-can result from direct actions, third parties

40
Q

How can you avoid reputational risk?

A

-have good codes of conduct
-strong governance
-transparent in all dealings
-socially and environmentally conscious

41
Q

How can you manage risk?

A

-TARA
Transfer
Avoid
Reduce
Accept

42
Q

What is malware?

A

-software inserted into computers when attachments are opened

43
Q

What is ransomware?

A

-locks a user out of their own information systems

44
Q

What is distributed denial of service attack (DDoS)?

A

-bombards an organisations central server with huge number of data requests at the same time

45
Q

What is spyware?

A

-allows the attacker to spy on operations without being seen

46
Q

What is keylogging?

A

-records every keystroke made the users of the system

47
Q

What is a password attack?

A

-hacker tries to steal a password
-rely on easy to guess passwords

48
Q

What is browser hijacking?

A

-hacker will change the default homepage or search engine
-feeds the user with popups to steal info

Q22-3.5 Business Awareness (5 decks)

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