Payments Risk Policy & Governance (2) Flashcards
Risk Management
Total process required to identify, control and minimize the impact of uncertain events.
Risk Appetite
Amount of risk, on a broad level, an entity is willing to accept in pursuit of value.
Risk Tolerance
Acceptable level of variation relative to achievement of a specific objective.
Risk Assessment
Overall process of risk identification, analysis and evaluation.
Risk Identification
Finding, recognizing and describing risks.
Risk Analysis
Process to comprehend the nature of risks and determine the level of risks.
Risk Evaluation
Process of comparing risk analysis results to determine if risk is at an acceptable level.
Risk Measurement
Process to determine the likelihood of an adverse event or threat occurring and the potential impact of such an event on the institution.
Risk Acceptance
Informed decision to accept or take a particular risk.
Risk Acceptance without Treatment
Risk is accepted as tolerable and falls within the risk appetite.
Risk Acceptance with Treatment
Risks that are monitored and reviewed to ensure they remain within the risk appetite.
Risk Avoidance
Informed decision to withdraw from or not become involved with an activity to avoid exposure to unwanted or unacceptable risks.
Risk Sharing
Form of risk treatment involving an agreed-upon distribution of risk with other parties.
Risk Assignment
Form of risk sharing that allocates risk equitably.
Board of Directors (Board)
Group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management-related policies.
