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11 Cards in this Set
- Front
- Back
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What are the features of risk management? |
Risk management is an integral part of achieving business objectives. Risk management has the potential to add value to the business. Risk management reduces the likelihood of suboptimal outcome. |
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What are the principles underlying ERM? |
Every entity, whether for-profit or not-for-profit, exists to realise value for its stakeholders. Value is created, preserved, or eroded by management decisions in all activities, from setting strategy to operating the enterprise day-to-day. ERM supports value creation by enabling management to: Deal effectively with potential future events that create uncertainty. Respond in a manner that reduces the likelihood of downside outcomes and increases the upside. |
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According to the ERM framework, how can objectives be categorised? |
strategic operational reliable in terms of reporting compliant with laws and regulations |
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ERM provides a coherent framework for managing risks. It has a positive focus on creating value rather than? |
a negative concern with eliminating potential hazards. |
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ERM is implemented by who? |
staff at all levels and applies at all levels of decision-making and control, from strategy setting down to detailed management of operations. |
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ERM consists of what eight inter-related components? |
Internal environment Objective setting Event identification Risk assessment Risk response Control activities Information and communication Monitoring |
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ERM considers that risk can be managed at what levels of the organistation? |
Enterprise or entity level, division or subsidiary level and as a business unit |
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Risk assessment requires a thorough understanding of the entity and the areas in which it operates. It comprises? |
risk identification risk description risk estimation |
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What are some Methods of estimating risk? |
Failure mode and effect analysis Fault tree/event tree analysis Hazard and operability studies Cost-benefit and risk-benefit analysis Root cause analysis Human reliability analysis Delphi method Sensitivity Soft systems analysis |
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Risk mapping provides a convenient method for discussing and recording risk assessments. It is a potentially useful technique to discuss risks. How is the map produced? |
Impact on one axis and likelyhood on another risk placed agaist this. |
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A risk register contains as much information as may be considered useful for monitoring purposes. Some of the data to be included in a risk register are |
Risk number (unique identifier) Risk category Description of risk Date risk identified Name of person who identified risk Likelihood Consequences A monetary value Interdependencies with other risks Risk owner Mitigation |
