Treasury Management (FIMA 40103)

Risk is caused by certainty on Treasury's objectives.

In the risk management process, 'Identifying risks' is the fourth element.

Treasury does not need to consider its internal strengths and weaknesses when identifying and evaluating risks.

Understanding the internal and external operating environment is unnecessary for identifying and evaluating risks.

Monitoring and reviewing risks is not part of the risk management process according to Treasury.

Communication and Consultation plan is not considered an element of the risk management process by Treasury.

The 'control owner' is responsible for holding accountability over the completion of the activity or control.

Additional treatment plans may be required if the residual risk level is acceptable.

Once treatment plans have been completed, they automatically become controls.

Key Risk Indicators (KRIs) are used to alert about exposure to risks.

Exceeding KRIs constantly after implementing a control suggests that alternate treatment may not be needed.

Each indicator must not be allocated a period against which the benchmark applies.

All major projects should have their financial justification and business case subjected to a suitable risk assessment.

The project risk management plan should be reviewed annually, regardless of the project phase.

Daren D.Cortez is the Head of the Department of Financial Management at the College of Accountancy and Finance in Polytechnic University of the Philippines.

Inadequate business processes, staff non-compliance, insufficient planning, and technology failures are common causes of project risks.

At what levels should significant risks of a major project be managed according to the text?

Identifying and documenting key risks that may impact Treasury's objectives is part of Requirement 2 in the text.