Enterprise Risk Management (M40) Flashcards Preview

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Flashcards in Enterprise Risk Management (M40) Deck (16):
1

T/F

A benefit of enterprise risk management is that it helps the organization seize opportunities

TRUE

2

T/F

A benefit of enterprise risk management is that it enhances risk response decisions

TRUE

3

T/F

A benefit of enterprise risk management is that it improves the deployment of capital

TRUE

4

T/F

A benefit of enterprise risk management is that it insures that the organization shares all major risks

FALSE

This is only one way of responding to risk and this technique cannot be used for all risks, nor should it be

5

____ is the acceptable variation with respect to a particular organizational objective

Risk Tolerance

6

______ is the level of risk an organization is willing to accept

Risk Appetite

7

______ is the risk of an event after considering management's response

Residual Risk

8

______ are events that require no risk response

Accepted Risks

9

_____ involves exiting the activity that gives rise to the risk

Risk Avoidance

10

______ involves no response to the risk

Risk Acceptance

11

______ involves managing a risk to reduce its likelihood or impact

Risk Reduction

12

______ involves sharing risk with another party

Risk Sharing

13

Probabilistic Models are used for ____

Risk Assessment

14

Process Flow Analysis is used for ____

Event Identification

15

Facilitated Workshops are used for _____

Event Identification

16

Loss event data methodologies are used for _______

Event Identification