SG 1 Enterprise Risk Management

Question 1

What are the 6 steps to risk assessment?

Answer 1

Identify 
Assessment
Risk Response
Internal Control activities
Information and communication
Monitoring

Question 2

4 main types of risks

Answer 2

Strategic - risk associated with ineffective strategic decisions - linked to mission and objectives.
Operational - ineffective ops, failed practices, large swings in rate of returns
Reporting - misleading or inaccurate info being reported
Compliance - failing to comply with laws or regulations

Question 3

4 techniques to assess risk

Answer 3

Benchmarking
Probabilistic Models
Sensitivity Analysis
Scenario Analysis

Question 4

2 things that are measured when assessing risk

Answer 4

Likelihood and Impact

Question 5

4 types of responses to risk

Answer 5

Avoid
Reduce
Transfer
Accept

Question 6

What is a contingency plan? What are the 4 steps?

Answer 6

A plan to implement should an adverse event take place.

Identify - Prioritize - Develop - Maintain

Question 7

Two ways of monitoring effectiveness

Answer 7

Built-in checks

Internal audit