Chapter 16 Flashcards Preview

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Flashcards in Chapter 16 Deck (6)
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1
Q

Operational risk

A

risk of direct/indirect losses, either from external events w/ impact to org’s ops, or inadequate/failed internal processes, people, systems

2
Q

Legal and regulatory/compliance risk

A

MOST LIKELY to be able to be reduced using risk transfer strategies

3
Q

value at risk (VaR)

A
4
Q

Monte Carlo simulation

A
  • uses historical experience to determine probability distrib. for multiple variables
  • runs multiple tests using different amounts for each variable
  • results in summary statistics
  • key values of interest: min., max., mean, and median values
5
Q

contingency business resumption plan

A

primarily addresses mgmt./ recovery from impacts of t_errorism and natural disasters*_

*Natural disasters (e.g. range from temp. power outage - major earthquake)

6
Q

Fidelity risk

A

theft of money, securities or property by an employee