Part 2 assessment

Question 1

Objective measurement of analytical data is difficult because of…

Answer 1

Practical problems in gathering data

Question 2

Difficulties in objective measurement mean it’s necessary to use both qualitative and quantitative measures (5)

Answer 2

Ranking 
Scenario analysis
Bottom up analysis
Kris
Historical loss Sara

Question 3

Ranking

Answer 3

Ranking risks so that decisions are made in a CONSISTENT manner
What is NECESSARY to achieve business aims ?

Question 4

Ranking : 2 main approaches to control and risk assessment techniques :

Answer 4

1. Takes series of QUESTIONNAIRES as basis for establishing that an adequate control environment is in place, then MODELLING
2. Look at INDIVIDUAL KEY RISKS IN ISOLATION and provide high, medium, low type of assessment

Question 5

Scenario analysis takes the key…

Answer 5

External loss events

Appraise whether they could happen in the firm

Question 6

The bottom up analysis seeks to…

Answer 6

Identify and analyse the individual risks and adequacy of controls across the entire business

Question 7

Advantages of bottom up analysis…

Answer 7

Addresses risk and controls issues at PROCESS level
Clearly identified
Risk aware culture
More transparent environment

Question 8

Quantifying risk in terms of the precise…

Answer 8

Financial impact it has on the business would be the ideal basis for decision making