Podcast
Questions and Answers
What is residual risk?
What is residual risk?
- The initial level of risk before management takes action
- The level of risk that remains after management has taken action to mitigate the risk (correct)
- The risk that is impossible to prevent
- The risk that is inherent in all business activities
Which two factors are considered when assessing residual risk?
Which two factors are considered when assessing residual risk?
- Loss frequency or probability and loss severity (correct)
- Financial stability and market trends
- Employee satisfaction and office location
- Customer feedback and product quality
What does a Risk Map visually depict?
What does a Risk Map visually depict?
- Relative risks based on their expected frequency and expected loss (correct)
- Market share of competitors
- Company profits over time
- Employee performance evaluations
What does 'Maximum probable loss' refer to?
What does 'Maximum probable loss' refer to?
Why should businesses reserve capital for unexpected loss?
Why should businesses reserve capital for unexpected loss?
What is the significance of the 'maximum possible loss'?
What is the significance of the 'maximum possible loss'?
What is the main purpose of risk assessment in the COSO Model?
What is the main purpose of risk assessment in the COSO Model?
Which of the following is NOT a part of control activities in the COSO Model?
Which of the following is NOT a part of control activities in the COSO Model?
How does the COSO Model suggest addressing risks to an organization's objectives?
How does the COSO Model suggest addressing risks to an organization's objectives?
Which principle is NOT associated with Information and Communication under the COSO Model?
Which principle is NOT associated with Information and Communication under the COSO Model?
What is the role of the board of directors in internal control according to the COSO Model?
What is the role of the board of directors in internal control according to the COSO Model?
How does the COSO Model advocate for managing risks effectively?
How does the COSO Model advocate for managing risks effectively?
What does inherent risk refer to in the context of a company?
What does inherent risk refer to in the context of a company?
Which of the following best describes inherent risk?
Which of the following best describes inherent risk?
When does inherent risk occur within a company?
When does inherent risk occur within a company?
Which statement best defines inherent risk?
Which statement best defines inherent risk?
What characterizes inherent risk within a company?
What characterizes inherent risk within a company?
Which factor contributes to inherent risk in a company?
Which factor contributes to inherent risk in a company?
