SG 1 Enterprise Risk Management Flashcards
What are the 6 steps to risk assessment?
Identify Assessment Risk Response Internal Control activities Information and communication Monitoring
4 main types of risks
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
4 techniques to assess risk
Benchmarking
Probabilistic Models
Sensitivity Analysis
Scenario Analysis
2 things that are measured when assessing risk
Likelihood and Impact
4 types of responses to risk
Avoid
Reduce
Transfer
Accept
What is a contingency plan? What are the 4 steps?
A plan to implement should an adverse event take place.
Identify - Prioritize - Develop - Maintain
Two ways of monitoring effectiveness
Built-in checks
Internal audit