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Total questions: 73
Worksheet time: 37mins
Detective controls
Enhanced maintenance procedures and improved arrangements for drivers to report vehicle defects
Review of vehicle routing and realistic estimates on delivery schedules so that drivers do not need to drive dangerously to arrive on time
Routine review of drivers’ licences to check for penalty points, routine inspections of vehicles to discover and report damage, review of fuel consumption to identify drivers with an aggressive driving style
Defensive driver training and the provision of a vehicle driver handbook with practical advice that is easy to understand and follow
None of them
Directive controls
Defensive driver training and the provision of a vehicle driver handbook with practical advice that is easy to understand and follow
Review of vehicle routing and realistic estimates on delivery schedules so that drivers do not need to drive dangerously to arrive on time
None of them
Routine review of drivers’ licences to check for penalty points, routine inspections of vehicles to discover and report damage, review of fuel consumption to identify drivers with an aggressive driving style
Enhanced maintenance procedures and improved arrangements for drivers to report vehicle defects
Corrective controls
Routine review of drivers’ licences to check for penalty points, routine inspections of vehicles to discover and report damage, review of fuel consumption to identify drivers with an aggressive driving style
None of them
Review of vehicle routing and realistic estimates on delivery schedules so that drivers do not need to drive dangerously to arrive on time
Defensive driver training and the provision of a vehicle driver handbook with practical advice that is easy to understand and follow
Enhanced maintenance procedures and improved arrangements for drivers to report vehicle defects
Preventive controls
Defensive driver training and the provision of a vehicle driver handbook with practical advice that is easy to understand and follow
Enhanced maintenance procedures and improved arrangements for drivers to report vehicle defects
None of them
Routine review of drivers’ licences to check for penalty points, routine inspections of vehicles to discover and report damage, review of fuel consumption to identify drivers with an aggressive driving style
Review of vehicle routing and realistic estimates on delivery schedules so that drivers do not need to drive dangerously to arrive on time
Routine review of drivers’ licences to check for penalty points, routine inspections of vehicles to discover and report damage, review of fuel consumption to identify drivers with an aggressive driving style is an example of ___________ .
Corrective controls
Detective controls
Directive controls
None of them
Preventive controls
Defensive driver training and the provision of a vehicle driver handbook with practical advice that is easy to understand and follow is an example of __________
Preventive controls
None of them
Detective controls
Directive controls
Corrective controls
Enhanced maintenance procedures and improved arrangements for drivers to report vehicle defects is an example of ________ .
Preventive controls
None of them
Detective controls
Corrective controls
Directive controls
Review of vehicle routing and realistic estimates on delivery schedules so that drivers do not need to drive dangerously to arrive on time is an example of ____________ .
None of them
Directive controls
Corrective controls
Preventive controls
Detective controls
__________ hazard These controls are designed to identify occasions when undesirable outcomes have been realized.
Directive
None of them
Preventive
Corrective
Detective
_________ controls are designed to ensure that a particular outcome is achieved.
None of them
Corrective
Preventive
Directive
Detective
________ hazard controls are designed to limit the scope for loss and reduce any undesirable outcomes that have been realized.
Preventive
None of them
Detective
Corrective
Directive
___________ hazard controls are designed to limit the possibility of an undesirable outcome being realized.
Detective
None of them
Corrective
Directive
Preventive
Risks that will impact the level of efficiency and cause dysfunction within the core processes
Political
Technological
Socialogical
Infrastructure
Internal
Risks that will impact the desire of customers to deal or trade, and level of customer retention
Technological
Sociological
Reputation
Political
Internal
Risks that will impact the level of customer trade or expenditure
Sociological
Technological
Internal
Political
Marketplace
Risks arising from unclear plans, priorities, authorities and accountabilities, and/or ineffective or disproportionate oversight of decision- making and/or performance.
Technological
Political
Internal
Governance
Sociological
Risks arising from property deficiencies or poorly designed or ineffective/inefficient safety management resulting in non- compliance and/or harm and suffering to employees, contractors, service users or the public.
Sociological
Technological
Internal
Political
Property
Risks arising from a failure to produce robust, suitable and appropriate data/information and to exploit data/information to its full potential.
Internal
Information
Sociological
Reputation
Political
Risks arising from a failure to prevent unauthorized and/or inappropriate access to the estate and information, including cyber security and non-compliance with General Data Protection Regulation requirements.
Sociological
Reputation
Internal
Political
Security
The advantages of captive insurance companies include:
When large losses are paid by the captive, these are consolidated to the parent balance sheet and the organization ultimately pays these losses.
The captive will be exposed to insurance claims that would otherwise have been paid by the commercial insurance market.
When large losses are paid by the captive, these are consolidated to the parent balance sheet and the organization ultimately pays these losses.
Savings may be achieved in overall insurance costs because they charge lower premiums than traditional insurance companies, which have a higher cost of administration.
The parent organization has to allocate capital to ensure adequate solvency of the captive insurance company.
Disadvantages of top-down risk assessment includes:
Likely to result in an enterprise-wide approach – the risks at the top will have impacts throughout the business.
Limited awareness of internal operational risks or interdependencies of risks within the business
Shows risk management buy-in from the top, resulting in acceptance of risk management activities at all levels.
Since it originates from the top, there is likely to be consistent methodology throughout the organization
The most significant strategic risks for the organization can be captured quickly and there will be a manageable number.
Disadvantages of top-down risk assessment includes:
Likely to result in an enterprise-wide approach – the risks at the top will have impacts throughout the business.
Danger that the approach becomes too superficial, because senior managers believe they can manage crises.
Shows risk management buy-in from the top, resulting in acceptance of risk management activities at all levels.
Since it originates from the top, there is likely to be consistent methodology throughout the organization.
The most significant strategic risks for the organization can be captured quickly and there will be a manageable number.
Disadvantages of top-down risk assessment includes:
Likely to result in an enterprise-wide approach – the risks at the top will have impacts throughout the business.
New risks emerging from the operational activities of the organization might not be fully identified
Shows risk management buy-in from the top, resulting in acceptance of risk management activities at all levels.
Since it originates from the top, there is likely to be consistent methodology throughout the organization.
The most significant strategic risks for the organization can be captured quickly and there will be a manageable number.
Advantages of bottom-up risk assessment includes:
There will be little focus on external risks or strategic risks.
Significant buy-in at all levels of the organization should be achieved.
Danger that the approach becomes too detailed and blinkered, resulting in a silo approach to risk assessment.
New risks emerging from the operational activities of the business might not be reported by operational staff.
Time-consuming and may demotivate, if it takes longer to develop the overall enterprise results.
Advantages of bottom-up risk assessment includes:
There will be little focus on external risks or strategic risks.
Can be mirrored to an existing organization chart, and risk impacts beyond immediate operational risks can be discussed.
Danger that the approach becomes too detailed and blinkered, resulting in a silo approach to risk assessment.
New risks emerging from the operational activities of the business might not be reported by operational staff.
Time-consuming and may demotivate, if it takes longer to develop the overall enterprise results.
Advantages of bottom-up risk assessment includes:
New risks emerging from the operational activities of the business might not be reported by operational staff.
Time-consuming and may demotivate, if it takes longer to develop the overall enterprise results.
Operational staff have great awareness of local risks and their causes, which might elude higher levels of management.
Danger that the approach becomes too detailed and blinkered, resulting in a silo approach to risk assessment.
There will be little focus on external risks or strategic risks.
Advantages of bottom-up risk assessment includes:
There will be little focus on external risks or strategic risks.
Methodology can be varied according to local norms and culture and this is useful for a multinational organization.
Danger that the approach becomes too detailed and blinkered, resulting in a silo approach to risk assessment.
New risks emerging from the operational activities of the business might not be reported by operational staff.
Time-consuming and may demotivate, if it takes longer to develop the overall enterprise results.
Disadvantages of bottom-up risk assessment includes:
Significant buy-in at all levels of the organization should be achieved.
There will be little focus on external risks or strategic risks.
Operational staff have great awareness of local risks and their causes, which might elude higher levels of management.
Methodology can be varied according to local norms and culture and this is useful for a multinational organization.
Can be mirrored to an existing organization chart, and risk impacts beyond immediate operational risks can be discussed.
Disadvantages of bottom-up risk assessment includes:
Significant buy-in at all levels of the organization should be achieved.
Time-consuming and may demotivate, if it takes longer to develop the overall enterprise results.
Operational staff have great awareness of local risks and their causes, which might elude higher levels of management.
Methodology can be varied according to local norms and culture and this is useful for a multinational organization.
Can be mirrored to an existing organization chart, and risk impacts beyond immediate operational risks can be discussed.
Disadvantages of bottom-up risk assessment includes:
Significant buy-in at all levels of the organization should be achieved.
Danger that the approach becomes too detailed and blinkered, resulting in a silo approach to risk assessment.
Operational staff have great awareness of local risks and their causes, which might elude higher levels of management.
Methodology can be varied according to local norms and culture and this is useful for a multinational organization.
Can be mirrored to an existing organization chart, and risk impacts beyond immediate operational risks can be discussed.
Disadvantages of bottom-up risk assessment includes:
Significant buy-in at all levels of the organization should be achieved.
New risks emerging from the operational activities of the business might not be reported by operational staff.
Operational staff have great awareness of local risks and their causes, which might elude higher levels of management.
Methodology can be varied according to local norms and culture and this is useful for a multinational organization.
Can be mirrored to an existing organization chart, and risk impacts beyond immediate operational risks can be discussed.
Use of structured questionnaires and checklists to collect information that will assist with the recognition of the significant risks.
Workshops and brainstorming
Crowdsourcing technology
Flow charts and dependency analysis
Questionnaires and checklists
Inspections and audits
Use of structured questionnaires and checklists to collect information that will assist with the recognition of the significant risks.
Workshops and brainstorming
Crowdsourcing technology
Flow charts and dependency analysis
Questionnaires and checklists
Inspections and audits
Collection and sharing of ideas at workshops to discuss the events that could impact the objectives, core processes or key dependencies.
Inspections and audits
Questionnaires and checklists
Flow charts and dependency analysis
Workshops and brainstorming
Crowdsourcing technology
Physical inspections of premises and activities and audits of compliance with established systems and procedures.
Crowdsourcing technology
Questionnaires and checklists
Inspections and audits
Flow charts and dependency analysis
Workshops and brainstorming
Analysis of the processes and operations within the organization to identify critical components that are key to success.
Flow charts and dependency analysis
Crowdsourcing technology
Workshops and brainstorming
Questionnaires and checklists
Inspections and audits
Use of mobile applications to enable individuals to upload their views on risks to a data platform.
Flow charts and dependency analysis
Workshops and brainstorming
Questionnaires and checklists
Crowdsourcing technology
Inspections and audits
An important consideration regarding the _________ is how the organization makes decisions which are the strengths and weaknesses within the organization and provide internal opportunities and threats.
external context
risk management context
risk architecture
risk protocols
internal context
___________ must fulfil two functions: firstly, provide support for the risk management process within the organization; and secondly ensure that the outputs from the risk management process are communicated to internal and external stakeholders.
risk management context
Strategy & Objective-Setting
Governance & Culture
internal context
external context
A __________ risk assessment exercise will tend to focus on risks related to strategy, tactics, operations and compliance (STOC), in that order.
None of them
right-left
bottom-up
inner-outer
top-down
A __________ risk assessment exercise will tend to focus on risks identi ed as compliance, hazard, control and opportunity in that order.
inner-outer
bottom-up
right-left
top-down
Advantages of top-down risk assessment includes:
Likely to result in an enterprise-wide approach – the risks at the top will have impacts throughout the business.
Senior managers and directors tend to be more focused on risks external to the organization
Limited awareness of internal operational risks or interdependencies of risks within the business
Danger that the approach becomes too superficial, because senior managers believe they can manage crises.
New risks emerging from the operational activities of the organization might not be fully identified.
Advantages of top-down risk assessment includes:
New risks emerging from the operational activities of the organization might not be fully identified.
The most significant strategic risks for the organization can be captured quickly and there will be a manageable number.
Limited awareness of internal operational risks or interdependencies of risks within the business
Senior managers and directors tend to be more focused on risks external to the organization.
Danger that the approach becomes too superficial, because senior managers believe they can manage crises.
Advantages of top-down risk assessment includes:
Senior managers and directors tend to be more focused on risks external to the organization.
Limited awareness of internal operational risks or interdependencies of risks within the business
New risks emerging from the operational activities of the organization might not be fully identified.
Danger that the approach becomes too superficial, because senior managers believe they can manage crises.
Shows risk management buy-in from the top, resulting in acceptance of risk management activities at all levels.
Advantages of top-down risk assessment includes:
Senior managers and directors tend to be more focused on risks external to the organization.
Danger that the approach becomes too superficial, because senior managers believe they can manage crises.
Since it originates from the top, there is likely to be consistent methodology throughout the organization.
Limited awareness of internal operational risks or interdependencies of risks within the business
New risks emerging from the operational activities of the organization might not be fully identified.
A ______________ approach to risk assessment involves senior management leading the process with information passed downwards for validation.
bottom-up
None of them
inner-outer
top-down exercise
Which of the following is a reputational benefit of ERM?
Accurate financial risk reporting
Reduced cost of funding and capital
Increased profitability for organization
Good reputation and publicity
None of them
Which of the following is a financial benefit of ERM?
Better marketplace presence
Improved supplier and staff morale
Regulators satisfied
Accurate financial risk reporting
Improved perception of organization
Which of the following is a financial benefit of ERM?
Improved perception of organization
Better marketplace presence
Improved supplier and staff morale
Regulators satisfied
Increased profitability for organization
Which of the following is a financial benefit of ERM?
Better marketplace presence
Improved supplier and staff morale
Regulators satisfied
Reduced cost of funding and capital
Improved perception of organization
In particular, when evaluating the infrastructure component of the internal context, the following issue should be addressed:
availability of adequate funds and future flows of funds to fulfil strategic plans
availability of funds to meet historical and anticipated future liabilities
arrangements for service delivery and/or transportation and reliable communication infrastructure
nature of internal financial control environment to prevent fraud
existence of robust procedures for correct allocation of funds for investment
In particular, when evaluating the infrastructure component of the internal context, the following issue should be addressed:
availability of adequate funds and future flows of funds to fulfil strategic plans
availability of funds to meet historical and anticipated future liabilities
nature of internal financial control environment to prevent fraud
business continuity plans in place to ensure continuity of activities following major disruption
existence of robust procedures for correct allocation of funds for investment
In particular, when evaluating the infrastructure component of the internal context, the following issue should be addressed:
availability of adequate funds and future flows of funds to fulfil strategic plans
information technology infrastructure sufficient to achieve resilience and protect data
nature of internal financial control environment to prevent fraud
availability of funds to meet historical and anticipated future liabilities
existence of robust procedures for correct allocation of funds for investment
In particular, when evaluating the infrastructure component of the internal context, the following issue should be addressed:
availability of adequate funds and future flows of funds to fulfil strategic plans
nature of internal financial control environment to prevent fraud
availability of adequate physical assets to support operational activities
availability of funds to meet historical and anticipated future liabilities
existence of robust procedures for correct allocation of funds for investment
Disadvantages of top-down risk assessment includes:
Likely to result in an enterprise-wide approach – the risks at the top will have impacts throughout the business.
Senior managers and directors tend to be more focused on risks external to the organization.
Shows risk management buy-in from the top, resulting in acceptance of risk management activities at all levels.
Since it originates from the top, there is likely to be consistent methodology throughout the organization.
The most significant strategic risks for the organization can be captured quickly and there will be a manageable number.
Advantages of insurance includes:
Difficulties can arise in quantifying the financial costs associated with the loss
Delays are often experienced in settling an insurance claim
Difficulty in determining the amount of insurance to purchase may result in under-insurance and failure to have claims paid in full
Disputes regarding the extent of the cover and the exact terms and conditions of the insurance contract
Provides indemnity against an expected loss
In particular, when evaluating the infrastructure component of the internal context, the following issue should be addressed:
availability of adequate funds and future flows of funds to fulfil strategic plans
availability of adequate people resources and skills, including intellectual property
nature of internal financial control environment to prevent fraud
availability of funds to meet historical and anticipated future liabilities
existence of robust procedures for correct allocation of funds for investment
In particular, when evaluating the infrastructure component of the internal context, the following issue should be addressed:
availability of adequate funds and future flows of funds to fulfil strategic plans
senior management structure and the nature of the risk culture
nature of internal financial control environment to prevent fraud
existence of robust procedures for correct allocation of funds for investment
availability of funds to meet historical and anticipated future liabilities
In particular, when evaluating the financial component of the internal context, the following issue should be addressed:
information technology infrastructure suf cient to achieve resilience and protect data
availability of funds to meet historical and anticipated future liabilities
arrangements for service delivery and/or transportation and reliable communi- cation infrastructure
None of them
business continuity plans in place to ensure continuity of activities following major disruption
Advantages of insurance includes:
Disputes regarding the extent of the cover and the exact terms and conditions of the insurance contract
Difficulty in determining the amount of insurance to purchase may result in under-insurance and failure to have claims paid in full
Delays are often experienced in settling an insurance claim
Difficulties can arise in quantifying the financial costs associated with the loss
Reduces financial uncertainty regarding hazard events that may occur
Advantages of insurance includes:
Delays are often experienced in settling an insurance claim
Difficulty in determining the amount of insurance to purchase may result in under-insurance and failure to have claims paid in full
Disputes regarding the extent of the cover and the exact terms and conditions of the insurance contract
Economic benefit if the loss is greater than the insurance premium
Difficulties can arise in quantifying the financial costs associated with the loss
Advantages of insurance includes:
Difficulties can arise in quantifying the financial costs associated with the loss
Delays are often experienced in settling an insurance claim
Difficulty in determining the amount of insurance to purchase may result in under-insurance and failure to have claims paid in full
Provides access to specialist services as part of the insurance premium. These services may include advice on loss control
Disputes regarding the extent of the cover and the exact terms and conditions of the insurance contract
Disadvantages of insurance includes:
Economic benefit if the loss is greater than the insurance premium
Provides access to specialist services as part of the insurance premium. These services may include advice on loss control
Provides indemnity against an expected loss
Difficulties can arise in quantifying the financial costs associated with the loss
Reduces financial uncertainty regarding hazard events that may occur
Disadvantages of insurance includes:
Provides access to specialist services as part of the insurance premium. These services may include advice on loss control
Provides indemnity against an expected loss
Reduces financial uncertainty regarding hazard events that may occur
Disputes regarding the extent of the cover and the exact terms and conditions of the insurance contract
Economic benefit if the loss is greater than the insurance premium
Disadvantages of insurance includes:
Economic benefit if the loss is greater than the insurance premium
Provides indemnity against an expected loss
Difficulty in determining the amount of insurance to purchase may result in under-insurance and failure to have claims paid in full
Reduces financial uncertainty regarding hazard events that may occur
Provides access to specialist services as part of the insurance premium. These services may include advice on loss control
Disadvantages of insurance includes:
Provides access to specialist services as part of the insurance premium. These services may include advice on loss control
Provides indemnity against an expected loss
Reduces financial uncertainty regarding hazard events that may occur
Delays are often experienced in settling an insurance claim
Economic benefit if the loss is greater than the insurance premium
In particular, when evaluating the financial component of the internal context, the following issue should be addressed:
nature of internal financial control environment to prevent fraud
availability of adequate physical assets to support operational activities
arrangements for service delivery and/or transportation and reliable communi- cation infrastructure
None of them
business continuity plans in place to ensure continuity of activities following major disruption
In particular, when evaluating the financial component of the internal context, the following issue should be addressed:
availability of adequate people resources and skills, including intellectual property
existence of robust procedures for correct allocation of funds for investment
arrangements for service delivery and/or transportation and reliable communi- cation infrastructure
None of them
business continuity plans in place to ensure continuity of activities following major disruption
In particular, when evaluating the financial component of the internal context, the following issue should be addressed:
senior management structure and the nature of the risk culture
availability of adequate funds and future flows of funds to fulfil strategic plans
arrangements for service delivery and/or transportation and reliable communi- cation infrastructure
None of them
business continuity plans in place to ensure continuity of activities following major disruption
__________ component of the internal context of an organization de nes the nancial procedures and the means by which money is managed and pro tability is achieved.
The infrastructure
The financial
The marketplace
None of them
The reputational
The overall purpose of evaluating the external context is ___________ .
to calculate the level of future future cash flows associated with the external environment within which the organization operates.
to determine the level of riskiness associated with the external environment within which the organization operates.
avoid opportunity risks
None of them
avoid hazard risks
For many organizations, the most important group of external stakeholders will be ________ .
managers
customers
media representatives
retailers
employees
__________ is a risk transfer or risk sharing response and represents an after-the-event cost containment response to a risk.
People skills and experience
Preventive controls
Competitor behaviour
Insurance
Brand and brand expansion
