Enterprise Risk Management (20%)

Risk can be defined as__________ and severity of the event and undesired consequences of an__________

• Doubt, Action

• Uncertainties, Activity

• Susicion, Act

• Severity, Event

Risk appetite refers to ____ or ____ of risk a bank is willing to take in order to meet its strategic objectives

• amount, level

• amount, percentage

• tolerance, type

• tolerance, level

Which of the following answer does NOT refer to Risk Management Process (COSO)?

• Establishing the context

• Risk identification

• Risk analysis

• Risk transfer

Which of the following statements refer to Enterprise Risk Management?

• Applicable to financial risk and accidental risk because they are transferable risks

• Risk Averse

• Occurs within one business department

• An integrated approach with a holistic view

The following statements are TRUE about the benefit of ERM EXCEPT?

• ERM provides the overall view of the risks involved promotes accountable risk management process.

• ERM allows better communication, monitoring and control with the engagement of the board of directors, top management, and various risk committees at production level.

• ERM can reduced risks arising from information asymmetry in operational level.

• ERM offers a good check and balance systems to ensure the quality of the bank’s assets are protected.

Risk appetite is the amount of risk an entity is willing to take entirely. Which of these following statements is TRUE ?

• There is fixed amount on risk appetite.

• Risk appetites change due to changing market environment.

• Risk appetite reflects the attitude towards risk mitigation.

• A larger risk appetite indicates that a bank is taking smaller risks.

1. The ability to identify and eliminate unacceptable risks is the understanding of

• Safety

• Incident

• Accident

• Hazard

Risk is the uncertainty that impacts the target is the understanding of

• Safety

• Hazard

• Injury

• Risk

Outsourcing some of your company's work can be a way of ____________ risk.

• taking

• terminating

• transferring

• treating

Loss prevention programs include...

• fire drills

• sprinklers

• safety equipment

• all of the above