Topic 2: Enterprise Risk Management Framework

Which of the following is NOT included in HM Treasury's Orange Book risk management process?

• Risk identification and assessment

• Risk monitoring

• Risk treatment

• Risk profile

What is the purpose of risk monitoring, according to HM Treasury's Orange Book?

• To support a detailed consideration of the nature and level of risk.

• To understand how the risk profile is changing and the extent to which internal controls are

  operating as intended to provide reasonable assurance over the management of risks to

  an acceptable level.

• Selecting the most appropriate risk treatment option.

• To review the adequacy

  and effectiveness of internal controls

The final objective of the CIMA risk management cycle is

• Identify risk areas

• Implement strategy and allocate responsibilities

• Information for decision making

• Develop risk and response strategy

What is the main responsibilities of Chief Operating Officer

• Develop the Risk Management policy and keep it up-to-date

• Cooperate with management on incident investigations

• Report loss events and near-miss accidents

• Cooperate with management on incident investigations

What does Internal Objective functions in COSO ERM Framework

• Facilitate risk aware activities so that employees understand the situations

• Monitored and modified the risk assessment as necessary

• Analysing the risk by consider the likelihood impact to the organization

• Set the basis how risk is viewed and addressed those risk that possibly happen in organization

What can internal audit do as a part of risk management roles in an organization?

• Agree and implement the risk management performance in their department

• Develop a risk-based internal audit programme

• Audit the finance account to ensure there is zero internal risk exist that will lead to fraud

• Establish a risk management policy for the board to follow

Which risk comprises the analysis and evaluation of risk through processes of identification, description and estimation in the AIRMIC, ALARM, IRM Risk Management Standard?

• Risk monitoring

• Risk treatment

• Risk reporting

• Risk assessment

Which year was the Australia/New Zealand Standard AS/NZS 4360 first published?

• 1995

• 2001

• 2006

• 2014

What is the second step of the risk management process in Australia/New Zealand Standard AS/NZS 4360?

• Analyse risks

• Identify risks

• Treat risks

• Evaluate risks

   What is definition of risk avoidance?

• Risk that can be totally avoided by avoiding the activity or setting that could contribute to the risk.

• Risk that is accepted and management internally rather than passing it to a third parties

• Risk that refer to diversifying risk by spreading it over multiple assets investment or project