Principles and Aims of Risk Management

Question 1

What is the main aim of risk management?

Answer 1

To achieve the best possible outcome and reduce the volatility and uncertainty of outcomes.

Question 2

What should a risk management initiative and framework aim to be?

Answer 2

PACED - Proportionate, Aligned, Comprehensive, Embedded, Dynamic

Question 3

What should a risk management initiative and framework aim to achieve?

Answer 3

MADE2 - Mandatory, Assurance, Decision-making, Efficient and Effective core processes.

Question 4

In MADE2 what does Assurance aim to deliver?

Answer 4

Assurance to the Board, Audit Committee and Senior Management that risk management and internal controls are PACED.

Question 5

In MADE2 what does Decision-making aim to deliver?

Answer 5

Risk management activities should generate risk information that can support decision making.

Question 6

In MADE 2 what does Effective and Efficient core processes aim to deliver?

Answer 6

Risk management should achieve efficient and effective core processes where these related to STOC to ensure the best outcome and reduced volatility of results.