Risk Management in Business Planning

What is the primary objective of a company's treasury operations management?

To minimize risk exposure
To maximize investment returns
To optimize cash flow forecasting
To ensure the company's ability to pay its bills (correct)

Which of the following is NOT a type of investor in terms of risk appetite?

Aggressive/Risk Adverse
Liberal/Risk Taker (correct)
Moderate/Risk Neutral
Conservative/Risk Averse

What is the primary function of the Securities and Exchange Commission (SEC)?

To protect investors' rights (correct)
To manage treasury risk
To regulate international derivatives
To ensure a sound and protected market

What is the primary objective of the Anti-Money Laundering Council (AMLAC)?

To prevent money laundering (B) Signup and view all the answers

What is the purpose of the Treasury Risk Framework?

To outline treasury's approach to enterprise risk management (A) Signup and view all the answers

What is the role of the International Organization of Securities Commissions (IOSCO)?

To act as a global securities regulator (C) Signup and view all the answers

What is the primary goal of risk management in Treasury?

To make informed business decisions with confidence (A) Signup and view all the answers

What is an essential aspect of integrating risk management into business activities?

Staff being alert to risks and performing risk assessments (C) Signup and view all the answers

What is the purpose of establishing the context in the risk management process?

To establish the scope, context, and criteria for risk management (D) Signup and view all the answers

What is the desired outcome of effective risk management in Treasury?

Reducing exposure to surprises and achieving strategic objectives (D) Signup and view all the answers

What is the role of risk management in the decision-making process?

To provide a framework for informed decision-making (A) Signup and view all the answers

What is the benefit of integrating risk management into business activities?

Greater certainty in achieving strategic objectives (D) Signup and view all the answers

What is the main purpose of detective controls?

To react to risks that have occurred (A) Signup and view all the answers

What is the next step after evaluating risks?

Escalating the risk to the next level of management for review and acceptance (A) Signup and view all the answers

What is the main purpose of risk treatment?

To reduce the residual risk level to a tolerable level (D) Signup and view all the answers

What is the decision to tolerate risk based on?

The willingness of the organization to tolerate risks of that type and level (D) Signup and view all the answers

What is the purpose of regular review of risks?

To ensure that the risks remain tolerable (A) Signup and view all the answers

What is risk avoidance?

Avoiding risks with detrimental consequences by deciding not to proceed with the activity likely to create risk (C) Signup and view all the answers

What are the sources of context for risk management?

From a combination of Government priorities, Treasury's strategic planning, Division's business plan, and program or project plan (A) Signup and view all the answers

What type of risks relate directly to strategic planning and management processes?

Strategic Risks (A) Signup and view all the answers

Who is responsible for overseeing operational risks?

Each group and associated divisional head, or the relevant program or project steering committee (D) Signup and view all the answers

What is the purpose of a project risk management plan?

To assess, prioritize, and mitigate risks throughout the project life cycle (A) Signup and view all the answers

How often should the project risk management plan be reviewed?

Annually, or at least once at each phase of the project life cycle (A) Signup and view all the answers

What is the purpose of identifying risks?

To prevent, degrade, or delay the achievement of business objectives (A) Signup and view all the answers

What is the main purpose of changing the likelihood of a risk?

To enhance the likelihood of beneficial outcomes and reduce the likelihood of negative outcomes (D) Signup and view all the answers

What is the purpose of a risk transfer?

To take out appropriate insurances or warranties (C) Signup and view all the answers

What is the purpose of monitoring and reviewing risks?

To identify new risks and update the risk register (D) Signup and view all the answers

What is the role of the Internal Audit and Risk Branch?

To facilitate training on risk management processes (D) Signup and view all the answers

What is the purpose of the risk register?

To record and track risks (B) Signup and view all the answers

What is the purpose of awareness briefings on the Risk Management Framework?

To train staff on risk management processes (C) Signup and view all the answers