Governance, risk and ethics

What does T in TARA stand for?

• Transfer

• Try

• Transport

• Team

What strategy under TARA is the following:

passing the risk on to another party which, in practice means an insurer or a business partner such as a supplier or a customer

• Transfer

• Avoid

• Reduce

• Accept

TARA acronym stands for

• Transfer, Avoid, Accelerate, React.

• Transfer, Accept, Avoid, Revolution.

• Telephone, Accept, Avoid, Reduce.

• Transfer, Avoid, Reduce, Accept.

In the TARA framework, which letter (i.e. from the "T, "A", "R" and "A") appropriately describes a risk that has a low likelihood but high impact on a business and what's the most famous/known strategy to deal with this risk.

• T (transfer)insurance, outsourcing, joint ventures, strategic alliances, etc.

• A (accept) simply accept it or modify the way that the activity is performed

• R, (reduce) insurance, outsourcing, joint ventures, strategic alliances, etc.

• A (avoid), simply do not venture or do it!

One of the principles is that Shareholders should be treated ______?

• Fairly according to their shareholding

• Equitably

Is the statement correct:

Embedding means introducing a taken-for-grantedness of risk awareness into the culture of an organisation?

• Yes

• No

What 5 steps can risk assessment be broken down into?

1. _______ risks facing the company  2. Decide on acceptable risk 3. Assess the likelihood of the risk occurring 4. Look at how impact of these risks can be minimised 5. Understand the costs involved in the internal controls set up to manage these risks

• Ignore

• Identify

The MENDELOW framework explains the appropriate management strategy per type of stakeholders.

Which of the following is not appropriate combination of stakeholders and management strategy?

• low power, low interest- high effort

• low power, high interest-keep informed

• high power, low interest-keep satisfied

• high power, high interest-key players

Which approach to corporate governance probably best fits a developing nation?

• Principles

• Rules

Answer explanation

Principles as their circumstances will be different and change as time progresses

What type of the stakeholder claims are made by those with their own ‘voice’?

• Direct

• Indirect