SU4 - The ERM Process - Stage 6 - Monitoring and Review

Question 1

Explain the purpose of the monitoring and review stage.

Answer 1

Because business environments are forever changing, new information becomes available or circumstances change. Therefore, all the stages needs to be reviewed in order to see if they are all still relevant and inline.

Question 2

There are 2 Process Mechanisms in the Monitoring and Review stage. Name them.

Answer 2

1. Meeting Agendas

2. Pro Formas

Question 3

The Process Activities that needs to take place in the monitoring and review stage are…

Answer 3

1. Executing
2. Monitoring
3. Controlling

Question 4

Explain the ‘Executing’ Process Activity.

Answer 4

All the actions planned in the Risk Treatment Stage to respond to Risks & Opportunities must be effectively executed.

Question 5

Explain the ‘Monitoring’ Process Activity.

Answer 5

When action plans are executed, the progress needs to be monitored.
It is a process of gathering information in order to see what actions has been successful, what changes occurred in the business environment and what lessons have been learned in order to improve future ERM processes.

Question 6

Explain the ‘Controlling’ Process Activity.

Answer 6

It is based on the information gathered in the monitoring process to form decision-making.
Controlling means to understand WHO needs WHAT info for WHAT purpose and WHEN.

Question 7

To give a manager control, the control activities must adhere to the following seven applications.

Answer 7

They must be:

1. Economical
2. Meaningful
3. Appropriate
4. Congruent (in agreement with something)
5. Timely
6. Simple
7. Operational