What is erm - Study guides, Class notes & Summaries

TEST BANK Enterprise Risk Management S - The Marketplace to Buy and Sell your Study Material 1 RSK2601 TEST BANK Question 1 Which one of the following is a benefit of effective risk and opportunity management? 1) Improved profit certainty 2) Increased shareholder value 3) Increased stakeholder confidence Correct option 3 4) Lower economic returns Explanation Improved cost certainty, sustainable shareholder value, increased stakeholder confidence and higher economic returns are all benefits of ef...

Testbank to accompany Audit and assurance 2 nd edition by Leung et al. © John Wiley & Sons Australia, Ltd 2023 Chapter 1: Auditing and governance © John Wiley & Sons Australia, Ltd 2023 1.2 Chapter 1: Auditing and governance Multiple-choice questions 1. The three major professional accounting bodies in Australia are: a. CAANZ, CPA and ASIC. b. CPA Australia, IPA and AARF. c. ATO, AUASB and ASIC. *d. CAANZ, CPA Australia and IPA. The correct option is d. Learning objective 1....

TEST BANK Enterprise Risk Management S - The Marketplace to Buy and Sell your Study Material 1 RSK2601 TEST BANK Question 1 Which one of the following is a benefit of effective risk and opportunity management? 1) Improved profit certainty 2) Increased shareholder value 3) Increased stakeholder confidence Correct option 3 4) Lower economic returns Explanation Improved cost certainty, sustainable shareholder value, increased stakeholder confidence and higher economic returns...

RSK2601 EXAM PACK 2023 100+ QUESTIONS AND CORRECT ANSWERS RATED A+. Enterprise risk management (ERM) is characterised by a 1. Narrow focus of hazard risks 2. Comprehensive, inclusive and proactive approach to risk management 3. Functional approach to risk management responsibilities 4. Lack of consistency in terms of level of detail and reporting formats The purpose of an ERM policy is to 1. Assist an organisation integrating risk management into its management processes 2. Communica...

Risk - Answer- the uncertainty about outcomes, with the possibility that some of the outcomes can be negative. Quantified by knowing the probability of the possible outcomes Probability - Answer- the likelihood that an outcome or event will occur. Probabilities are stated as a decimal figure, a percentage, or a fraction. What are the 2 elements associated with risk? - Answer- uncertainty of outcome + possibility of negative outcome Pure Risk - Answer- a chance of loss or no loss, but no...

Enterprise Risk Management (ERM) - includes methods and processes used by organizations to manage risks and seize opportunities related to the achievement of objectives Risk Oversight - the board's supervision of the risk management framework and risk management process Risk Management - the responsibility(s) of a company's management team in relation to risk understanding an organization: step 1 - identifying the organization's objectives, stakeholder obligations, statutory duties, and...

Personal Financial Planning Pyramid - bottom to top: 1.Risk mgmt protection (life/health insurance), 2.Wealth accumulation (savings & accumulation, growth & diversification, speculation investments) 3. Wealth distribution Traditional Risk Management Process (TRM) of an Organization - 1. Identify Risk 2. Evaluate Risk 3. Select a Risk Management Technique to treat each risk 4. Implement and Review Risk Management (RM) Techniques to treat risk - Risk avoidance Loss Control Risk Retension ...

Personal Financial Planning Pyramid - Answer-bottom to top: 1.Risk mgmt protection (life/health insurance), 2.Wealth accumulation (savings & accumulation, growth & diversification, speculation investments) 3. Wealth distribution Traditional Risk Management Process (TRM) of an Organization - Answer-1. Identify Risk 2. Evaluate Risk 3. Select a Risk Management Technique to treat each risk 4. Implement and Review Risk Management (RM) Techniques to treat risk - Answer-Risk avoidance Loss Con...

The COSO exposure draft defined risk as "The possibility that events will occur and affect the achievement of a strategy and objectives." ISO defines risk as "effect of uncertainty on objectives." correct answers How does COSO define risk? How does ISO define risk? The five fundamental points embedded in the COSO and ISO definitions of risk are: ■■ ■ Risk begins with strategy formulation and setting of business objectives. ■■ ■ Risk involves uncertainty, which COSO refers ...

Drones may be equipped with cameras that relay data in real-time Which one of the following uses infrared light to detect nearby objects? - Answer- Lidar AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, and Georgia. The company has compiled a policyowner data base that can be used to send text messages when hurricanes approach. The company provides early warnings, storm updates from the National Weather Service, and hurricane safety measures. The company ...

What is Risk? correct answers Uncertainty. Variation around expected outcome The probability of an outcome The expected value of an outcome Uncertainty and Risk correct answers Consequences or impacts on individuals, enterprises and communities also known as outcomes arise from uncertainty All Firms Face Risk correct answers The goal of risk management is not to eliminate risk, but to minimize the cost of risk All companies face risk Core versus incidental risk Despite the CAP...