Untitled Quiz

<p>To outline a strategy for addressing identified risks (C)</p> Signup and view all the answers

<p>ERM approaches risks as interconnected, rather than in isolation (A)</p> Signup and view all the answers

<p>Comprehensive records detailing the assessment of internal controls (A)</p> Signup and view all the answers

<p>The allowance for a single assurance statement under specific conditions (A)</p> Signup and view all the answers

<p>Addressing marketing strategies (C)</p> Signup and view all the answers

<p>It increases chances of developing a collaborative response. (B)</p> Signup and view all the answers

<p>ERM and internal control are components of a governance framework. (C)</p> Signup and view all the answers

<p>A broader portfolio view of all areas of risk exposure. (B)</p> Signup and view all the answers

<p>Ensuring absolute risk elimination. (B)</p> Signup and view all the answers

<p>Having clear measures for monitoring and follow-up. (D)</p> Signup and view all the answers

<p>To identify and mitigate risks affecting strategic goals (A)</p> Signup and view all the answers

<p>Risks that exist by nature of programs or activities and cannot be removed (A)</p> Signup and view all the answers

<p>It is systematic, structured, and responsive to change (B)</p> Signup and view all the answers

<p>People risk (C)</p> Signup and view all the answers

<p>By continuously monitoring and adapting to the evolving risk profile (C)</p> Signup and view all the answers

<p>Leadership sets the tone at the top, promoting engagement in risk management. (D)</p> Signup and view all the answers

<p>It is related to ineffective internal processes and errors. (A)</p> Signup and view all the answers

<p>It helps identify opportunities and add value. (D)</p> Signup and view all the answers

<p>Enhanced collaboration and proactive risk awareness (C)</p> Signup and view all the answers

<p>The development and execution of strategic plans (B)</p> Signup and view all the answers

<p>Enhancing accountability in federal government programs (B)</p> Signup and view all the answers

<p>OMB Circular A-123 (C)</p> Signup and view all the answers

<p>Implementing practices to assess and report risks (D)</p> Signup and view all the answers

<p>Economic, operational, and organizational change factors (B)</p> Signup and view all the answers

<p>Enterprise Risk Management (ERM) (B)</p> Signup and view all the answers

<p>Implementing corrective action plans selectively (D)</p> Signup and view all the answers

<p>To assess the effectiveness of operational strategies (B)</p> Signup and view all the answers

<p>Laws enacted by Congress and executive directives (C)</p> Signup and view all the answers

<p>Annual Performance Plans and Reports (B)</p> Signup and view all the answers

<p>To analyze the risks faced by an agency in achieving its strategic objectives (B)</p> Signup and view all the answers

<p>Respond to risks (A)</p> Signup and view all the answers

<p>Recognizing potential undesired outcomes and opportunities (B)</p> Signup and view all the answers

<p>Throughout the year, including surveillance of leading indicators (A)</p> Signup and view all the answers

<p>Agencies must develop corrective action plans for identified deficiencies (C)</p> Signup and view all the answers

<p>To evaluate and monitor performance of risk management strategies (A)</p> Signup and view all the answers

<p>Conduct financial audits (B)</p> Signup and view all the answers

<p>Assessing a range of risk response options guided by risk appetite (A)</p> Signup and view all the answers

<p>Following a structured and organized approach (C)</p> Signup and view all the answers

<p>The probability of the risk occurring and its potential outcomes (A)</p> Signup and view all the answers

Formal systems designed to provide assurance that organizational objectives are met.

Agency-wide approach to address all risks (internal and external), combining their impact instead of handling separately.

A weakness in an internal control that could result in a risk not being properly addressed.

A control deficiency that is important enough to cause a risk to be at a noticeable level.

A very serious control deficiency that substantially increases a risk of failing to meet an organizational goal.

Continuously assessing and improving the effectiveness of controls.

A plan developed to address control deficiencies.

Annual reports on the adequacy of internal controls.

A comprehensive approach to managing all risks, internal and external, aligning them with organizational goals.

ERM helps integrate risk management with strategy, identify and mitigate risks, change organizational culture, and take advantage of opportunities.

Risks that are inherent to a mission, program, or activity.

The risk that controls are not effective in preventing or mitigating risks.

A major program, activity, or functional subdivision of an agency used to analyze inherent risk.

An ERM program should be tailored to the specific needs of the agency and take into account human and cultural factors.

ERM should build upon and unite existing risk management processes, systems, and activities.

ERM should be systematic, structured, and timely, but also dynamic and responsive to change.

ERM should be based on the best available information.

ERM should be fully integrated into agency decision-making processes, with active leadership support.

A comprehensive and integrated approach to managing risks across an entire organization. It involves identifying, assessing, responding to, and monitoring risks to achieve organizational goals.

A structured framework that outlines the key steps involved in managing risks. It provides a roadmap for identifying, analyzing, responding to, and monitoring risks.

A document that summarizes the significant risks an organization faces. It helps assess the overall risk appetite and the likelihood and impact of various risks.

The level of risk an organization is willing to accept in pursuit of its goals. It establishes the boundaries for risk-taking and helps guide risk management decisions.

The first phase of the ERM model, focusing on understanding the external and internal environments of the organization, including its goals, strategies, and potential threats.

The second phase of the ERM model, where risks are systematically identified through various techniques, such as brainstorming and data analysis.

The third phase of the ERM model, where risks are assessed based on their likelihood and impact, prioritizing those with the highest potential for causing harm.

The fourth phase of the ERM model, where options for managing risks are explored and assessed based on cost, feasibility, and effectiveness.

The fifth phase of the ERM model, where the best risk response option is selected and implemented, taking into account the organization's risk appetite.

The sixth phase of the ERM model, where the effectiveness of risk management strategies is continually assessed and adjustments are made as needed.

Specific areas within an agency that are identified as potentially vulnerable to risks. These could include financial, operational, or reputational risks.

The process of implementing solutions to address identified agency risk points. This could involve changes to policies, procedures, or technology.

A work environment where employees feel comfortable sharing information about potential risks and concerns, leading to quicker problem identification and resolution.

Working together as a team to develop and implement solutions to address agency risks. This approach fosters better outcomes and increased resilience.

A government that can withstand and adapt to unexpected challenges, such as financial crises or natural disasters. This is achieved by proactively managing risks and developing robust responses.

The Office of Management and Budget (OMB) provides guidance for federal agencies on budgeting, planning, risk management, and performance reporting.

Circular A-11 outlines the process for federal agencies to develop strategic plans, prepare budgets, conduct performance reviews, and report on outcomes.

Circular A-123 provides guidance to federal managers on improving accountability and effectiveness in federal programs by identifying, managing, and reporting on risks.

The Federal Managers' Financial Integrity Act of 1982 emphasizes improving accountability in federal programs.

In 2016, OMB revised Circular A-123 to incorporate guidance on Enterprise Risk Management (ERM).

Enterprise Risk Management (ERM) is an agency-wide approach to address all risks (internal and external), combining their impact instead of handling them separately.

Federal leaders and managers are responsible for establishing and achieving goals, improving effectiveness, providing reports, maintaining compliance, and effectively managing risk.

Risks arise from a variety of internal and external factors, such as economic changes, operational issues, and organizational shifts, that can impact an agency's ability to meet its goals.

If not managed properly, risks can negatively impact an agency's ability to meet its goals and objectives.

Federal governance is defined through laws, executive directives, and agency policies, with OMB guidance playing a significant role.