8.2 Role of governance and compliance within a risk management context Flashcards Preview

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Flashcards in 8.2 Role of governance and compliance within a risk management context Deck (6)
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1
Q

An organisation’s risks are managed by its _____________.

A

employees

2
Q

Give some examples of common risk management governance and compliance issues.

A
  • health and safety breaches (e.g. not waiting PPE)
  • taking excessive financial risk
  • non compliance with expenses policies
  • fraud and theft of company assets
  • diversity and discrimination issues
  • breaching financial mandates
  • not reporting serious breaches
  • hiding control weaknesses
  • sharing passwords
  • taking data outside the organisation
  • no declaring conflicts of interest
  • accepting bribes
3
Q

What forms the “cornerstone” of effective governance and compliance?

A

Policies and procedures

4
Q

Why are effective policies and procedures important?

A

They ensure consistent behaviour across an organisation, aligning decision making.

5
Q

To support effective governance and compliance, implementation of risk management policies require the following:

  • e________ of why they are needed
  • clear and unambigious r_____ and r____________
  • b_______ support
  • communication and t________
  • regular r______ and updates
A
explanation
roles
responsbilities
board
training
reviews
6
Q

Why is an effective risk appetite framework important?

A

To ensure that employees understand the risks that may be taken and those which must not, and the roles of management and committees to take risks as needed.

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