Risk Management Flashcards

Question

What is a risk seeker attitude?

Answer 1

They would pick investments based on risk not return. Even if they can go for an option with a more guaranteed return and less risk they would still choose it.

Answer 2

``` It provides a selection of potential responses to risk. Transfer/sharing Avoidance Reduction Acceptance and retention ```

Answer 3

You transfer or share the risk with a third party. Often exists in an insurance context. overall the cost to you would wind up as less because someone else will bear some of it.

Answer 4

You do not undertake anything that carries risk. You lose any potential advantages as a consequence though.

Answer 5

Doing activities that don’t get rid of the risk but they do limit it to an acceptable level. You then have to work to keep the risk at that level constantly. You have to have quite stringent control measures in place.

Answer 6

You take the risk and tolerate the potential losses that come with it. This is often a last resort but often looking at risk this way ends up cheaper than the alternative.

Answer 7

You look at the current risk management controls and monitor whether they are working. You also measure them against the risks you now face (as risks are always subject to change).

Answer 8

Listed companies have to determine any risks they are willing to take to achieve their objectives and report risk management issues.

Answer 9

Was corrective action taken. Was it a new risk or one previously identified. Had the risk been planned for and if so why were the signs it was coming to fruition ignored. How effective were any of the risk and response controls in place.

Answer 10

Anything that impacts the wellbeing of the business and its normal operations.

Answer 11

PR, strategy and finance

Answer 12

Axis 1 - processes and functions exist to PROTECT the organisation. Axis 2 - the way the organisation functions generally drives resilience at all times.

Answer 13

Having risk management and disaster recovery plans. Knowing where the risks could come from so that if they arise you can see them coming.

Answer 14

Creating strong relationships with all and instilling a strong sense of values in the behaviours of staff. Creating an environment that it would be harder for the product of risk to shake. Creating a flexible organisation environment that would be able to adapt and respond.

Answer 15

Lack of expertise Senior management not being involved enough It not being woven in to the culture of the business The tech not being well equipped enough Not having robust approaches to things

Answer 16

Diversified resources Strong internal and external network of relationships Rapid and decisive responses to emerging crises Constant self review and adaptation

Answer 17

Compliance - with policy Completeness - how well rounded is the policy Value - how does the organisation itself measure these things Capability - how has it tested how capable it is in itself

Answer 18

Having solid information security plans that would allow for prevention and recovery should a cyber threat arise

Answer 19

Short term - for minor breakdowns | Long term - for breakdowns that would be more serious with longer term implications