1. Introduction Flashcards Preview

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

Flashcards in 1. Introduction Deck (13)
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1
Q

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

A

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

2
Q

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

A

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

3
Q

A risk source is where a risk …

A

A risk source is where a risk originates.

4
Q

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

A

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

5
Q

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

A

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

6
Q

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

A

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

7
Q

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

A

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

8
Q

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

A

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

9
Q

Implementation of risk management can be resourced …

A

Implementation of risk management can be resourced internally or externally.

10
Q

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

A

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
Q

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

A

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
Q

Benefits of ERM are:

A
  1. Align risk and strategy
  2. Creating opportunities
  3. Improve organisational resilience
13
Q

The outputs from successful risk management include:

A
  1. Compliance
  2. Assurance
  3. Enhanced decision-making