Chapter 5: Risk Management Framework and Process - Vocabulary

Question 1

Risk owner

Answer 1

An individual accountable for the identification, assessment, treatment, and monitoring of risks in a specific environment

Question 2

Key performance indicator (KPI)

Answer 2

Financial or nonfinancial measurement that defines how successfully an organization is progressing toward its long-term goals

Question 3

Key risk indicator (KRI)

Answer 3

A tool used by an organization to measure the uncertainty of meeting a strategic business objective

Question 4

P-D-C-A Cycle

Answer 4

The P-D-C-A Cycle, also known as the Shewhart cycle and the Deming cycle, is an expansion of an approach to process improvement. The steps include Plan, Do, Check, and Act

Question 5

Risk control

Answer 5

A conscious act or decision not to act that reduces the frequency and/or severity of losses or makes losses more predictable

Question 6

Risk financing techniques

Answer 6

Risk management techniques, such as retention or transfer, that generate funds to finance losses that risk control techniques cannot entirely prevent or reduce