Chapter 6: Advisory RFW

Question 1

Areas covered by the COSO framework CROS

Answer 1

• Compliance
• Reporting
• Operational
• Strategic

Question 2

The components of ERM covered by COSO: CROME CIA

Answer 2

• Control activities
• Responses to risk
• Objective setting
• Monitoring
• Event identification
• Communication
• Internal environment
• Assessment of risk

Question 3

The key principles of risk management according to the Orange Book PRIOR AC:

Answer 3

• Prioritising risks
• Reporting and reviewing is NB
• Impact of risk understood
• Objectives linked to risks
• Residual and inherent risk understood
• Appetite should be subdivided
• Committee to manage risk should be created

Question 4

The principles of ISO 31000:2009 NUDISTS VIDI

Answer 4

• Value created and protected by risk management
• Integrated into all business processes
• Dynamic process
• Improvement done continuously
• Nature of the business considered
• Uncertainty addresses
• Decision making must consider risk management
• Information should be gathered on the risk
• Systematic approach
• Transparent process
• Social factors in the business considered