Font size
WorksheetsERM
Total questions: 10
Worksheet time: 6mins
Risks that an organization may face related to short-term and long-term debt and equity decisions are commonly called:
Operational Risks
Hazard Risks
Financial Risks
Strategic Risks
The risk that remains after all attempts management might take to it is commonly called:
Inherent risk
Risk of loss
Residual risk
Operational risk
A Belgian clothing retailer sells its products mainly to online customers worldwide. The company management believes that its primary risk relates to problems with its online website. A secondary risk is the exchange rate volatility. Which two of the following best describe the risks described by the management?
Strategic risk
Financial risk
Operational risk
Business risk
When purchasing temporary investments, which one of the following best describes the risk associated with the ability to sell the investment in a short period of time without significant price concessions?
Credit risk
Price risk
Financial risk
Liquidity risk
Which of the following principle(s) support(s) the governance and culture component of COSO's ERM framework?
Exercise board oversight
Defines risk appetite
Commitment to core values
Defines desired culture
Analyzes business context
Which is not a key step in the Risk Management Process?
Implement risk management strategy
Determine risk tolerance
Evaluate capital reserves
Evaluate risk exposure
A risk-averse management team typically
does not prioritize mitigation of risk
is not willing to spend time to mitigate risk
is not willing to spend money to reduce risk
does not mind spending money to mitigate risk
A company chooses to "self-insure" its properties due to the staggeringly high cost of insurance. This is an example of
risk sharing
risk reduction
risk avoidance
risk acceptance
Risks that relate to losses from inadequate or failed internal processes, people and systems are commonly called
Hazard risk
Financial risk
Operational risk
Strategic risk
Each of the following components is part of enterprise risk management, except for
Strategy and objective-setting
Performance
Review and revision
Control environment
