Podcast
Questions and Answers
What is the primary goal of the risk management process in relation to the company's risk appetite?
What is the primary goal of the risk management process in relation to the company's risk appetite?
- To keep risks within acceptable or manageable levels (correct)
- To shift risk to other departments or personnel
- To eliminate all risks in pursuit of the company's objectives
- To take on as much risk as possible to maximize returns
What is the role of internal auditors in the risk management process?
What is the role of internal auditors in the risk management process?
- To implement specific risk mitigation and control procedures
- To conduct examination of the risk management process for its effectiveness over time (correct)
- To set business objectives for the company
- To implement specific tasks and duties pertaining to the processes within their departments
What is the first step in the risk management process?
What is the first step in the risk management process?
- Set business objectives (correct)
- Implement risk mitigation and control procedures
- Identify the risk
- Conduct examination of the risk management process
What is the purpose of setting business objectives in the risk management process?
What is the purpose of setting business objectives in the risk management process?
What type of objective is related to the effective and efficient use of corporate resources?
What type of objective is related to the effective and efficient use of corporate resources?
What is the term for the process of identifying risks or threats to the achievement of business objectives?
What is the term for the process of identifying risks or threats to the achievement of business objectives?
What is an example of internal communication in a company?
What is an example of internal communication in a company?
What is the purpose of monitoring in a company's risk management process?
What is the purpose of monitoring in a company's risk management process?
What happens if a company fails to communicate with government agencies in a timely and appropriate manner?
What happens if a company fails to communicate with government agencies in a timely and appropriate manner?
Who is responsible for evaluating the effectiveness of the risk management process on a periodic basis?
Who is responsible for evaluating the effectiveness of the risk management process on a periodic basis?
What is the purpose of communicating risk management policies and directives from top management to rank-and-file personnel?
What is the purpose of communicating risk management policies and directives from top management to rank-and-file personnel?
What is the outcome of not properly communicating risk management policies and directives to employees?
What is the outcome of not properly communicating risk management policies and directives to employees?
What is required for a company's risk management process to be effective?
What is required for a company's risk management process to be effective?
What should be done with significant deficiencies in the design and operating effectiveness of the risk management process?
What should be done with significant deficiencies in the design and operating effectiveness of the risk management process?
What is the main limitation of internal control?
What is the main limitation of internal control?
Why might segregation of duties not be effective in preventing fraud?
Why might segregation of duties not be effective in preventing fraud?
What is an example of management override?
What is an example of management override?
What is the purpose of segregating incompatible duties?
What is the purpose of segregating incompatible duties?
What can detect fraud in a situation where there is collusion between employees?
What can detect fraud in a situation where there is collusion between employees?
Why is internal control not capable of providing absolute assurance?
Why is internal control not capable of providing absolute assurance?
What is the effect of good internal control on company operations?
What is the effect of good internal control on company operations?
What is the main goal of internal control?
What is the main goal of internal control?
What is the primary reason ABC Co. assigned the risk rating of 1 to the risk of cybercrime?
What is the primary reason ABC Co. assigned the risk rating of 1 to the risk of cybercrime?
Which risks did ABC Co. identify as significant due to their high combined risk scores?
Which risks did ABC Co. identify as significant due to their high combined risk scores?
How did ABC Co.'s management choose to respond to Risk #2?
How did ABC Co.'s management choose to respond to Risk #2?
What type of monitoring activity involves routine management reviews of processes?
What type of monitoring activity involves routine management reviews of processes?
Why is monitoring an essential part of the risk management process?
Why is monitoring an essential part of the risk management process?
What response did ABC Co. choose for Risk #3?
What response did ABC Co. choose for Risk #3?
Who generally carries out separate evaluations in a risk management process?
Who generally carries out separate evaluations in a risk management process?
What is the main purpose of the graphical presentation linked to the likelihood and impact assessment?
What is the main purpose of the graphical presentation linked to the likelihood and impact assessment?
What is the appropriate risk rating for an event with a significant impact?
What is the appropriate risk rating for an event with a significant impact?
What kind of impact does violating a traffic rule typically have?
What kind of impact does violating a traffic rule typically have?
What could be the consequence for a resort business violating environmental laws?
What could be the consequence for a resort business violating environmental laws?
What is a risk map used for?
What is a risk map used for?
What color is typically used to represent significant risks on a risk map?
What color is typically used to represent significant risks on a risk map?
Which risks are placed on the bottom left corner of a risk map?
Which risks are placed on the bottom left corner of a risk map?
What is the typical risk response for high likelihood/high impact risks?
What is the typical risk response for high likelihood/high impact risks?
How should management handle moderate risks?
How should management handle moderate risks?
