Risk Monitoring and Assessment Quiz

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What is the purpose of risk monitoring in the risk management process?

To eliminate all risks from the company's projects and objectives

To identify new risks and continuously track both new and existing risks (correct)

To assess the overall risk appetite of the company

To evaluate the likelihood and consequence of specific types of risks

What does risk assessment involve after determining the risk's overall likelihood of occurrence combined with its overall consequence?

Reviewing and updating the overall risk management process

Determining the odds of risks occurring and their consequences

Identifying ways to reduce the occurrence of risks

Decision-making on the acceptability of the risk based on the company's risk appetite (correct)

What is the goal of risk analysis in risk management?

To review and update the overall risk management process

To eliminate all identified risks from the company's operations

To understand each specific instance of risk further and how it could influence the company's projects and objectives (correct)

To assess the overall risk appetite of the company

Which element of risk management includes the assessment of the vulnerability of critical assets to specific threats?

Assessment of the vulnerability of critical assets to specific threats Signup and view all the answers

What does determination of risk in risk management involve?

The expected likelihood and consequence of specific types of attacks on a particular asset Signup and view all the answers

Which part of the mitigation plan includes following up on both the risks and the overall plan to monitor and track new and existing risks continuously?

Risk monitoring Signup and view all the answers

What is the purpose of a futures contract?

To protect against changes in asset or commodity price Signup and view all the answers

What does an effective accounting information system aim to do?

Identify and record all valid financial transactions Signup and view all the answers

What is the main purpose of a swap?

Reduce funding costs, arbitrage tax or funding differentials Signup and view all the answers

What does the concept of 'integrity' in professional and business relationships entail?

Being straightforward and honest in all professional and business relationships Signup and view all the answers

What is the primary aim of a joint venture strategy?

To share risk with another party for expansion into new markets Signup and view all the answers

What does 'market risk' refer to?

Risks arising due to movement in the prices of financial instruments Signup and view all the answers

What distinguishes a forward contract from other types of contracts?

It is made today for delivery of an asset at some specified future date, at a pre-agreed price Signup and view all the answers

What does 'objectivity' involve in professional and business judgments?

Not allowing bias, conflict of interest, or undue influence of others to override judgments Signup and view all the answers

What is the primary function of an effective accounting information system?

To identify and record all valid financial transactions. Signup and view all the answers

What is the purpose of a forward contract?

It is made today for delivery of an asset at some specified future date, at a pre-agreed price. Signup and view all the answers

Risk Monitoring and Assessment Quiz

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