10 Questions
What is the first treatment option mentioned for risk treatment?
Risk Avoidance
What is the purpose of 'Changing the likelihood of the risk' as a treatment option?
To enhance the likelihood of beneficial outcomes and reduce the likelihood of negative outcomes
Provide an example of 'Changing the consequences' as a treatment option.
Emergency response, business continuity plans, and disaster recovery plans
What does 'Risk Transfer' involve as a treatment option?
Taking appropriate insurances or requiring a warranty as part of a contract
What does 'Risk Tolerance without further treatment' entail?
An explicit decision to accept the risk
What should be considered when selecting the most appropriate treatment option?
Comparing the cost of implementing each option against the benefits derived from it
What is the general principle regarding the cost of treating risks?
The cost of treating risks should be commensurate with the benefits obtained
Why are treatment options not necessarily mutually exclusive?
Different options can be combined for more effective risk management
What does 'Changing the consequences' focus on in risk treatment?
Increasing gains and reducing losses
What is the role of internal controls in risk treatment?
To ensure efficient and effective risk treatment
Test your knowledge on the seven interrelated elements of the risk management process adopted by Treasury, including establishing the context, identifying, analyzing, evaluating, treating, monitoring risks, and communication and consultation plan.
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