Module 2 & 3 Flashcards

Question

COSO 2017 RM process

Answer 1

framework and process are woven together understanding context and objectives are captures in first two components of framework - governance and structure and strategy and objective setting. More reconisable RM process steps are found in the third component - performance ID risk assess severity of risk prioritises risk implements risk responses develops portfolio review assess and prioritises are used instead of analysis and evaluation steps in ISO 31000 rest of RM process is captured in 4. review and revision and 5. information commnuication and reporting

Answer 2

Combination of RM framework, principles and processes risk manageemnt shall be A - essential part of governance and leadership B- an integral part of all operational activties C- collaborative and informed by best available info D- have structured process E- continually improved Princple D includes the main process Risk ID and aassessment risk trreatment risk monitoring risk reporting. risk assessment alligns to ISO 31000 steps of analysis and evaluation. The OB framework is closely alligned to ISO 31000 in its language and approach

Answer 3

governance and reporting arrangements operational structure roles and responsibilities many areas considered in the risk architecture detailed list 1. the orgs devisions, departments, strcutures,systems, processes and accountability, cultures, leadership, stregnth and weakness 2. internal stakeholders - staff manager the board 4. its approach to corp governance, resources, competencies and capabilities, its culture the way it conducts itsself 5. factors that influence how the org will try to set and achieve its objectives when undertaking a risk assessment for a single team or task, the internal context is considered to be everything INSIDE that team rather than the full context for the org COSO 2017 focuses on setting of strategy as the core to ERM process & the effect that internal and external context changes can have on setting the strategy and the ability to achieve it

Answer 4

the external enviornment which the org operates in - taking into accoiunt things that can affect the orgs ability to achieve its objecctives relates to 1. external stakeholder expectations 2.industry regulators 3. behaviour of competitiors 4. general economic enviornment org operates in this includes: 1.the social and cultural, Polictical , legal, regulatory, financial , technological, economic, natural and competitive enviornment 2.industrty products markets competitiors supliers logistic 3. key driver and trends impacting on the objectives of the org 4. relationships with and the perceptions and values of external stakeholders helps answer what does the world around us look like what is driving our strategic direction FIRM scorecard- Reputational and Marketplace

Answer 5

expectations of internal stakeholders includes members of staff and contractors , outsourced suppliers orgs structures cultures, the views and behaviours of the board of directors and internal stregnths and weaknesses your org has FIRM scorecard - Financial and infastructure are primarily related to internal context Infastructure can also relate to internal context FIRM scorecard SWOT

Answer 6

a structure where a number of orgs come together endeavour in order to achieve outcomes that none of them could have achieved on their own four key elements 1/core actvivtirs of the team function department project or org that is being considered - WHAT IS IT YOU DO 2.key inputs to those core acvtivies WHAT DO YOU NEED IN ORDER TO DO WHAT YOU DO 3. key outputs from those core activties - what is it that you need to deliver from those core activties

Answer 7

a tool used to help understand the external context of an org using standard catagoties or cliassification as prompts - stands for political economic social tech legal enviornment also used as a risk classification tool

Answer 8

simple framework 1. facilitates an understanding of the wider business enviornment 2. encourages the devlopment of external and strategic thinking 3. anticipates future business threats 4. helps identify actions to avoid threats or minimise impacts of threats 5.facilitates identification of business opportunties

Answer 9

1.can over simplify the amount of data needed for decisions 2. needs to be undertaken on a regular basis to be effective 3. requires different people being involved with different perspectives 4.access to quality external data sources can be costly and time consuming 5.difficult to antipate developments that may effect the org in future 6.risk of capturing too much data - difficult to identify priorities 7.can be based on assumptions which prove to be unfounded

Answer 10

POLITICAL tax, policy, employment laws, enviornmental regulations, trade restrictions and reform, tarrifs and political stability ECONONOMIC economic growth/decline, itnerest rates, exchange rates and inflation, minimum wage, working hours, unemployment, credit availability ,cost of liviing SOCIAL cultural norms and expectations, health and consciousness, population growth rate, age distributation, career attitudes, emphasis on safety, global warning TECHNOLOGICAL technology changes that impact your products or services, new technologies, barrries to enteries in given markets, financial decisions like outsourcing and supply chain ENVIORNMENTAL OR ETHICAL

Answer 11

Cause (Source - fact) As a result of, due to, because of.. existing condition LANGUAGE - is ,does , has, has, not (present tense) Cause is happening now or happened (FACTS) Risk (uncertain event) MAY occur LANGUAGE - may, might, possibly (uncertain future) CONSEQUENCE (impacts) which would lead to.. effect on objectives LANAGUAGE - would will... conditional future

Module 2 & 3 Flashcards

Key Concepts in Risk Management (36 cards)