Mastering Risk Management

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Which of the following is a key component of an effective internal control system?

Management oversight and control culture (correct)

Risk recognition and assessment

Independent internal audit function

Information and communication

What is the function of an internal audit in a company?

To provide independent risk-based assurance service

To add value and improve the company's operations

To review the effectiveness of governance and control processes

All of the above (correct)

What does it mean to strengthen the internal control system and risk management systems?

To implement internal control and risk management (correct)

To cultivate a synergic relationship with shareholders/members

To encourage employees' participation

To promote shareholder/member rights

What is the relationship between governance, risk management, and internal control?

They are connected to one another Signup and view all the answers

What is the purpose of an independent internal audit function?

To provide independent and objective assurance Signup and view all the answers

What are the key duties in respecting the rights of stakeholders?

Effective redress for violation of stakeholder's rights Signup and view all the answers

According to the text, what is the purpose of having an Investor Relations Program?

To communicate with shareholders Signup and view all the answers

What is the main recommendation regarding the fair treatment and protection of stakeholders?

To adopt a transparent framework and process Signup and view all the answers

According to the text, what are some stakeholder engagement touch points in the company?

Investor Relations Office Signup and view all the answers

What is the main recommendation regarding employee participation?

To develop a mechanism for employee participation Signup and view all the answers

According to the text, what are some activities shown in an anti-corruption policy?

All of the above Signup and view all the answers

What is the main recommendation regarding sustainability and social responsibility?

To be socially responsible in all dealings Signup and view all the answers

According to the text, what is the responsibility of the Board in promoting shareholder rights?

To create a policy that informs the shareholders of all their rights and the processes on how to exercise them Signup and view all the answers

According to the text, what are shareholders' rights related to?

All of the above Signup and view all the answers

According to the text, what is the purpose of voting in the Annual or Special Shareholders' meeting?

To hear what the shareholders think and how many of them feel the same way Signup and view all the answers

According to the text, what should the Board make available to resolve intra-corporate disputes?

Alternative dispute mechanism Signup and view all the answers

According to the text, what should the Board establish to ensure constant engagement with shareholders?

Investor Relations Office (IRO) Signup and view all the answers

According to the text, when should the Notice of Annual and Special Shareholders' Meeting be sent?

28 days before the meeting Signup and view all the answers

According to the text, what does sustainable development mean for a company?

Considering economic, environmental, and social and governance issues Signup and view all the answers

What is the recommendation for a company regarding its relationship with society?

Recognize the interdependence between business and society Signup and view all the answers

According to the text, what is the purpose of a company's interactions?

To serve its environment and stakeholders in a positive and progressive manner Signup and view all the answers

Which one of these companies is mentioned as an example of considering the planet Earth?

New Belgium Brewing Company Signup and view all the answers

According to the text, what does sustainable development not mean for the fashion industry?

Marketing sustainable clothing Signup and view all the answers

What should a company's value chain process consider according to the text?

Economic, environmental, and social and governance issues Signup and view all the answers

Which function is responsible for identifying and analyzing key risks exposure relating to economic environmental, social and governance (EESG) factors and the achievement of the organization’s strategic objectives?

Chief Risk Officer Signup and view all the answers

What is the function of the Chief Risk Officer?

Supervises the entire ERM process and spearheads the development, implantation, maintenance, and continuous improvement of ERM processes and documentation. Signup and view all the answers

What is the role of the Board Risk Oversight Committee?

Oversees the organization's Enterprise Risk Management system to ensure its functionality and effectiveness. Signup and view all the answers

What is the function of the Chief Internal Auditor/Chief Audit Executive?

Performs regular and special audit as contained in the annual audit plan and/or based on the company’s risk assessment. Signup and view all the answers

What is the role of the Enterprise Risk Management framework?

To identify and analyze key risks exposure relating to economic environmental, social and governance (EESG) factors and the achievement of the organization’s strategic objectives. Signup and view all the answers

What is the function of the Risk Management function?

Identifying and analyzing key risks exposure relating to economic environmental, social and governance (EESG) factors and the achievement of the organization’s strategic objectives. Signup and view all the answers