Module 1 - Unit 2: Risk management standards

Question 1

Name five risk management processes

Answer 1

8Rs & 4Ts

IRM (2002)

COSO ERM

ISO 31000

The Orange Book

Question 2

Which one of the following risk standards has “control activities” as a feature in the risk process?

A. COSO ERM cube

B. ISO 31000 (2018)

C. The Orange Book

D. IRM (2002) standard

Answer 2

A. COSO ERM cube

Question 3

What’s the definition of a “risk standard”?

Answer 3

A published guide for managing risk, usually comprising a risk framework and (especially) a risk process.

Question 4

What’s the definition of a “risk framework”?

Answer 4

Also known as the risk management context. This comprises the risk strategy, risk architecture and risk protocols and forms the risk context which helps to drive the risk process.

Question 5

What’s the definition of a “risk process”?

Answer 5

The stages in the process of managing risk, which is driven mainly by how you set up the framework (but also affected by the internal and external environment).

Question 6

What’s the definition of “risk architecture”?

Answer 6

Part of the risk framework, which focuses on answering the question “Who does what?” in the organisation in relation to risk management.

Question 7

What’s the definition of “risk context”?

Answer 7

This covers three layers of organisation which together drive the risk process; they are the external environment, the internal environment and the risk management context (also known as the risk framework).

Question 8

What’s the definition of “risk protocols”?

Answer 8

The set of tools, procedures and instructions that an organisation has for managing risk.

Question 9

What’s the definition of “risk strategy”?

Answer 9

The agreed overriding purpose and aims of risk management in the organisation, which involves the publication of a risk policy document and the setting of the risk appetite.

Question 10

List the 8Rs and 4Ts of hazard risk management

Answer 10

Recognition of risks Rating of risks Ranking against risk criteria Response to risk - Tolerate - Treat - Transfer - Terminate Resourcing controls Reaction planning Reporting on risk Reviewing & monitoring

Question 11

Which one of the folowing definitions is the same as the definition of the risk management context?

A. The risk management strategy

B. The risk management process

C. The risk management framework

Answer 11

C. The risk management framework

Question 12

Which part of the risk framework focuses on answering the question ‘Who does what’ in the organisation in relation to risk management?

A. Risk architecture

B. Risk context

C. Risk protocols

Answer 12

A. Risk architecture