ADVANCED ERM EXAM

What is a CRO?

• Chief regulatory officer

• Chief Risk officer

• Compliance risk officer

• Chief radio officer

Which of the following statements relating to risk appetite is the correct one?

• The amount of risk the business is willing to accept in pursuit of key objectives.

• The level of risk already taken in the last 3 years

• The risk you have to take

• The risk you do not want to take

Is reputation damage?

• A risk

• A cause

• An effect

• None of the above

Which of the following is the best definition of risk exposure?

• The risk you have today

• Where you need the risk to be

• Events where the risk is not currently acceptable

• The risk on the horizon

What is the Delphi technique for risk assessment?

• Export analysis

• Expert analysis

• Expat analysis

• Expected analysis

What is a risk owner?

• The person responsible for maintaining the risk registers

• The person responsible and accountable for individual risks

• The Director of the function where the risk sits

• The person designated by Internal audit to be responsible for a risk

What is FMEA?

• Fair minded effort analysis

• First method expected analysis

• Failure mode and effect analysis

• Further measures and evidence analysis

What is Monte Carlo analysis?

• A gambling tool

• Deciding whether to visit Europe

• A diary planning exercise

• A method of analyzing multiple scenarios

Which of the following is not a valid success criteria for ERM?

• Number of risks reduced to acceptable levels

• Number of risks eliminated

• Reduction in cost of risk

• Savings in insurance

Is it a good idea to hold risk workshops with the shortlisted suppliers or contractors before awarding a contract?

• Only if you are required to do so

• Yes definitely

• Only where the project is more than $1 billion

• Only when problems have been encountered in similar projects