Business Risk Terminology Quiz

The potential loss due to changes in market conditions affecting an asset's value.

The risk that a borrower or creditor won't fulfill their financial obligations according to the agreement.

The risk of loss due to inadequate systems, human error, mismanagement, or natural disasters.

The risk of an enterprise not complying with laws, regulations, ethical standards, or codes of conduct.

The risk of a project failing to achieve its objectives and deliver results according to the project plan.

A type of market risk caused by fluctuations in exchange rates between currencies.

A type of market risk influenced by changes in interest rates affecting investments or borrowing costs.

A type of market risk related to the performance of stocks and the overall equity market.

Any event that disrupts the normal operation of a service, potentially causing a reduction in quality.

An intentional act that exploits a vulnerability to gain unauthorized access or use of an asset.

An attempt to gain unauthorized access or use of an asset.

Anything capable of causing harm to an asset. They aim to exploit vulnerabilities.

A weakness in an asset's design, implementation, or operation. It can expose the asset to threats.

The possibility of an uncertain event happening, with potential losses or gains, that could hinder an enterprise's ability to achieve its objectives.

The probability of a situation with uncertain frequency and magnitude of loss or gain that could hinder an enterprise's ability to meet its objectives.

Different kinds of risks that an enterprise can face, potentially impacting its operations and objectives.

The probability of something happening.

A measure of the potential severity of loss or the potential gain from realized events/scenarios.

A document that records a high-level principle or course of action that has been decided on.

A mathematically driven measure of the possibility of a specific outcome as a ratio of all possible outcomes.

A document containing a detailed description of the steps necessary to perform specific operations in conformance with applicable standards.

The level where choices about company-wide risks are made in relation to innovation and business strategy.

The level where choices are made about risk in relation to medium-term goals to deliver long-term strategic objectives.

The level where choices are made regarding risks that affect short-term goals to ensure business operations continue.

The process of identifying, analyzing, and managing potential risks.

Accepting risk as an essential element of business and effectively identifying and managing it.

A formal document that outlines the company's policy regarding risk management.

A risk management approach that involves understanding the context of risk at different organizational levels.

General controls adapted for Information Technology (IT) systems, ensuring safeguards for sensitive IT functions and assets.

Procedures designed to ensure that only valid and authorized information is entered, processed, and recorded accurately and completely.

Controls that verify, validate, and edit data during the input process.

Controls that ensure every transaction is entered, processed, and recorded only once.

Controls that apply specifically to the software applications used in a system.

Controls that address the overall management and direction of the IT function, including strategy, organization, and staffing.

Controls that regulate access to IT resources, including data and programs.

Controls that govern the development and maintenance of IT systems, including change management and testing.

Policies, procedures, and activities that ensure the reliability of application program processing. They aim to guarantee data completeness and accuracy during processing.

A formal inspection and verification to check whether standards or guidelines are being followed, records are accurate, or efficiency and effectiveness targets are being met.

Controls that are designed to ensure that systems maintain integrity; applicable system functions operate as intended; and information contained by the system is relevant, reliable, secure and available when needed.

Controls that help to deter, detect, and correct errors or irregularities that may occur during data processing. They help maintain data integrity and reliability.