Week 6

Question 1

What is Enterprise Risk Management?

Answer 1

• strategic business discipline
• addresses all risks across an organization
• aims to manage risks within the organisations risk appetite
• provides reasonable assurance regarding achievement of entity objectives

Question 2

What are the core ERM Framework components?

Answer 2

• risk governance
• risk identification and assessment
• risk quantification and aggregation
• risk monitoring and reporting
• risk-based decision making

Question 3

What risks are organizations exposed to?

Answer 3

Strategic risk [external to organisation[ and operational risk [internal to the organisation]

Question 4

Do organisations have different priorities on material risks?

Answer 4

Yes

Aviation, material, financial, tourism, energy

Risks are interrelated and dynamic

Question 5

Describe the COSO Guide Model

Answer 5

The relationship between compliance, internal control and risk management.

A process effected by an entity board of directors/management

Designed to provide assurance regarding achievement of objectives - operations, reporting, compliance

Question 6

How does the COSO guide define ERM

Answer 6

Culture, capabilities, practices integrated with strategy-setting and its performance that Organisations RELY on to manage risk in creating, preserving and realizing value

Question 7

What are the Risk Management 20 Principles