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Enterprise Risk Management (RSK2601) > 1. Introduction > Flashcards

Flashcards in 1. Introduction Deck (13)
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1

A business must understand that ... unavoidable and that the business must appropriately change processes to achieve the best possible solution.

A business must understand that change is unavoidable and that the business must appropriately change processes to achieve the best possible solution.

2

A business must use its ... to the most competitive advantage in the market.

A business must use its resources to the most competitive advantage in the market.

3

A risk source is where a risk ...

A risk source is where a risk originates.

4

A ... needs to be conducted to determine the business’ competitive advantage in the industry/market.

A competitor analysis needs to be conducted to determine the business’ competitive advantage in the industry/market.

5

A ... is used as a communication tool to assist businesses in better understanding the processes by which it operates.

A process map is used as a communication tool to assist businesses in better understanding the processes by which it operates.

6

A ... sets out how the risks, which have been identified by the risk assessment procedure, will be managed and controlled.

A risk management policy sets out how the risks, which have been identified by the risk assessment procedure, will be managed and controlled.

7

A ... has the intrinsic potential to give rise to risk.

A risk source has the intrinsic potential to give rise to risk.

8

An effective ... function or structure, based on a broad and integrated framework, is necessary to ensure that all risks are covered.

An effective risk management function or structure, based on a broad and integrated framework, is necessary to ensure that all risks are covered.

9

Implementation of risk management can be resourced ...

Implementation of risk management can be resourced internally or externally.

10

It is important to understand that a business can have a very ... . A business must know its industry and the risks associated with that specific industry

It is important to understand that a business can have a very competitive market in which it operates. A business must know its industry and the risks associated with that specific industry

11

Risk management processes that have already been put in place must constantly be ... to establish the effectiveness of the processes in the business.

Risk management processes that have already been put in place must constantly be reviewed to establish the effectiveness of the processes in the business.

12

Benefits of ERM are:

1. Align risk and strategy

2. Creating opportunities

3. Improve organisational resilience

13

The outputs from successful risk management include:

1. Compliance

2. Assurance

3. Enhanced decision-making