questions Flashcards
When did modern risk management begin?
In the 1950’s due to incomplete and costly insurance and this led to the start of self insurance and mutual schemes
When did the revolution in financial risk management begin?
In the 1970’s, this is when ART (alternative risk transfer) methods were looked at for example derivatives and cat bonds
What are detective risk controls used for?
To identify unwanted occurrences that have happened
What is the GRC approach?
Organisational structure that merges some of the functions of the 3 departments (Governance, Risk, Compliance) whilst still retaining their crucial independence
When was the earliest developments in managing business risk by passing it to an insurer?
13th Century - Marine insurance in Italy
However marine insurance policies first appeared in the UK high court in 1547
What is corporate governance?
The way a board sets up an organisation to achieve its objectives with the systems it puts in place to manage and control the organisation
What is a contingency reserve fund?
Built up from an organisations trading surplus/profit and sometimes used for development
