RISKMAN(CHAPTER1)

Question 1

• Is concerned with issues such as health and safety at work, fire prevention and avoiding the consequences of defective products.

Answer 1

Hazard Risk management

Question 2

Can cause disruption to normal operations, as well as resulting in increased costs and poor publicity associated with disruptive events.

Answer 2

Hazard risk

Question 3

Refer to risks as being attached to corporate objectives

Answer 3

Attachment risk

Question 3

Risk can be desirable and deliver benefits or rewards

Answer 3

Risk and Reward

Question 4

Which is not belong in evaluating the financial component of the internal context?

Answer 4

Exposure to disruption through either technology or geopolitical reasons

Question 4

Defined as uncertainty of outcomes and this is particularly applicable to the management of control risks.

Answer 4

Risk and Triggers

Question 5

It is internationally recognized, and is a highly influential risk management standard.

Answer 5

ISO 13000

Question 5

Organization’s approach to assess, pursue, retain or avoid risks

Answer 5

Attitudes to risk

Question 6

It is a comprehensive process that integrates or combines risk management into an organization’s strategy.

Answer 6

Enterprise Risk Management

Question 6

Which of the following best describes the concept of “calculated risk” in risk management?

Answer 6

Taking risks after carefully weighing potential rewards and understanding the risks involved

Question 7

Which of the following is the second step in the risk management process according to ISO 31000:2018?

Answer 7

Risk Assessment

Question 8

They are associated with
adherence to the law of the country and the regulations that apply to the sector in which you
operate.

Answer 8

Compliance Risks

Question 9

These are associated with a source of potential harm or a situation with the potential to undermine
objectives in a negative way.

Answer 9

Hazard Risks

Question 10

are the most common risks associated with operational
risk management, including occupational health and safety programs.

Answer 10

Hazard Risks

Question 11

These are associated with unknown and unexpected events.

Answer 11

Control Risk

Question 12

These fall into two camps: the risks associated with taking the opportunity, and the risks of not acting.

Answer 12

Opportunity Risks

Question 12

They are sometimes referred to as
uncertainty risks and they can be extremely difficult to quantify.

Answer 12

Control Risks

Question 13

The level of risk before any actions have been taken to change the
likelihood or magnitude of the risk.

Answer 13

Inherent level of risk

Question 14

The level of risk after initial control measures have been put in
place.

Answer 14

Current or residual level of risk

Question 15

The level of risk that is desired or will be obtained with the application of
further control measures.

Answer 15

Target level of risk

Question 16

what are the Levels of Risks

Answer 16

Inherent level of risk
Current or residual level of risk
Target level of risks

Question 17

Date where Early risk mitigation became an event.

Answer 17

19th Century

Question 18

Insurance firms began imposing risk control standards (e.g., fire
brigades, Plimsoll line).

Answer 18

Early Risk Mitigation

Question 19

Regulated working conditions and introduced a risk-based approach

Answer 19

Health and Safety at work act (UK)

Question 20

Date where Health and Safety at work act (UK) became an event.

Answer 20

1974

Question 21

Emphasized that risk management involves more than just insurance.

Answer 21

Massey Ferguson

Question 22

date of Introduction of 'Cost of Risk'

Answer 22

1960s

Question 23

Massey Ferguson emphasized that risk management involves more than just insurance.

Answer 23

Introduction of cost of risk

Question 24

Development of risk management linking insurance with risk control.

Answer 24

Integration of insurance and risk control (Europe)

Question 25

date of Integration of Insurance and Risk Control (Europe):

Answer 25

1970s

Question 26

a careful decision to take a chance after thinking about he possible outcomes and their effects.

Answer 26

Calculated risk

Question 27

It means you weigh the pros and cons before deciding to go for it.

Answer 27

Calculated risk

Question 28

Co-ordinated activities to direct and control an organization with regard to risk.

Answer 28

ISO GUIDE 73

Question 29

The co-ordinated activities designed and operated to manage risk and exercise internal control within an organization

Answer 29

HM TREASURY

Question 30

Process which aims to help organizations understand, evaluate and take action on all their risks with a view to increasing the probability of success and reducing the likelihood of failure.

Answer 30

INSTITUE OF RISK MANAGEMENT

Question 31

Selection of those risks a business should take and those that should be avoided or mitigated, followed by action to avoid or reduce risk.

Answer 31

LONDON SCHOOL OF ECONOMICS

Question 32

Is a comprehensive process that integrates or combined risk management into an organization's strategy.

Answer 32

Enterprise Risk Management (ERM)

Question 33

set out the overall approach to the successful management of risk, including a description of the risk management process, together with the suggested framework that supports that process.

Answer 33

Risk management standards

Question 34

defines roles, responsibilities, communication and risk-reporting structure

Answer 34

Risk Architecture

Question 35

appetite, attitudes and philosophy are defined in the risk management policy

Answer 35

Risk Strategy

Question 36

are defined in the risk guidelines for the organization and include the rules and procedures, as well as the risk management methodologies, tools and techniques that should be used

Answer 36

Risk Protocols

Question 37

The standard provides a statement of risk management principles, as well as a description of the risk management framework and process all based around the central purpose of risk management, which is stated as the ‘creation and protection of value.

Answer 37

ISO 31000

Question 38

it is often called the ‘COSO ERM Cube’ It was first introduced in 2004 and remains influential in guiding organizations on how to handle risks effectively

Answer 38

COSO ERM CUBE

Question 39

– The internal environment encompasses the tone of an organization and sets the basis for how risk is viewed and addressed.

Answer 39

Internal environment

Question 40

Objectives must exist before management can identify potential events affecting their achievement.

Answer 40

Objective setting

Question 41

– Policies and procedures are established and implemented to help ensure the risk responses are effectively carried out.

Answer 41

Control activities

Question 42

Internal and external events affecting achievement of objectives must be identified, distinguishing between risks and opportunities.

Answer 42

Event identification

Question 43

Risks are analysed, considering likelihood and impact, as a basis for determining how they should be managed.

Answer 43

Risk assessment

Question 43

Management selects risk responses: avoiding, accepting, reducing or sharing risk.

Answer 43

Risk response

Question 44

Relevant information is identified, captured and communicated so that people can fulfil their responsibilities.

Answer 44

Information and communication

Question 45

The entirety of enterprise risk management is monitored and modifications made as necessary

Answer 45

Monitoring