What steps can the risk management professional take to embed risk management in decision
making? - ANSWER>>Include risk assessment in planning process; Leverage cross-functional risk
assessment team and subject matter experts to identify enterprise risks; Consider cascading and
cumulative effects
Gap Analysis - ANSWER>>Technique that can be used to determine what steps might need to be
taken to improve the organization's capacity to move from a current state to a desired future state.
Risk appetite - ANSWER>>The total exposed amount that an organization wishes to undertake on
the basis of risk-return trade-offs for one or more desire and expected outcomes.
Communication and Consultation - ANSWER>>Risk management professional's role in
Implementing Risk Strategies
Support Function: Legal - ANSWER>>Risk identification, assessment and treatment of risks related
to the obligation an organization undertakes and transfers through contracting, as well as its
compliance with applicable laws and regulatory obligations.
What are the typical failures in risk management which can be avoided if it is embedded in the
decision making process? - ANSWER>>Program not integrated into strategy or its execution;
Focused on the wrong risks; Not executed in a repeatable process; Risk management is practiced in
a silo; Activity not viewed as being value added
Risks - ANSWER>>The effect of uncertainty on objectives
The chance of something happening that will have an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as they are discovered
,Enterprise Risk Management - ANSWER>>A strategic business discipline that supports the
achievement of an organization's objectives by addressing the full spectrum of its risks and
managing the combined impact of those risks as an interrelated risk portfolio.
Support Function: Business continuity and crisis management - ANSWER>>Risk identification,
assessment and creation of emergency response and recovery plans related to threats or hazards
that might lead to operational disruptions
Analysis - ANSWER>>A systematic examination and evaluation of data or information by breaking it
into its component parts to uncover their relationships. An examination of data and facts to
uncover and understand cause-effect relationships, thus providing basis for problem solving and
decision making.
To embed risk management in both routine and strategic decision, what should managers be able
to recognize? - ANSWER>>The type of decision being made; Who should be included in the decision
making process; Where in the process decisions are being made
Risk management strategies' general focus - ANSWER>>Meeting or exceeding an organization's
objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit - ANSWER>>Risk identification, assessment and treatment
through audit plans with focus on fraud, corruption, regulatory noncompliance and/or
misrepresentation related to the organization's internal control systems, financial operations,
financial statements and reporting as well as enterprise risk and the organization's risk
management framework and process.
Strategic Plan - ANSWER>>Determines that actions the organization will take at any stage of the
planning period as circumstances change.
,Risk owner - ANSWER>>The individual who is ultimately accountable for ensuring that risk is
managed appropriately, including the implementation of selected responses.
Risk Identification Process - ANSWER>>Finding, Recognizing and Recording Risks
Support Function: Compliance - ANSWER>>Risk identification, assessment and treatment of risk
related to regulations that may affect the organization's ability to operate in its respective
jurisdictions, as well as activities that fall within its compliance and ethics programs.
To successfully integrate risk management into decision making, risk management professionals
will rely on strategies that draw on personal and technical skills in - ANSWER>>Building
organizational awareness; . Differentiating the different types of decisions used in varying
situations using elements of decision quality; Performing various roles in the taking risk into
account in decision-making process
Strategy - ANSWER>>A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time.
Risk tolerance - ANSWER>>The amount of uncertainty an organization is prepared to accept in total
or more narrowly within a certain business unit, a particular risk category or for a specific initiative.
Strategic Risk Management - ANSWER>>A business discipline that drives deliberation and action
regarding uncertainties and untapped opportunities that affect an organization's strategy and
strategic execution.
Value Chain - ANSWER>>The series of functions, processes, materials and activities (inputs) from
concept to the eventual end user that creates and builds value at every step in order to deliver a
product or service.
, To build organizational awareness, the risk management professional needs to do the following: -
ANSWER>>Be a persuasive communicator and facilitator; Have a clear communication plan; Engage
interested parties, including primary and secondary audiences; Demonstrate that risk management
creates the most value ; Develop feedback loops for continuous learning
Risk Analysis - ANSWER>>The process of characterizing and understanding the nature of risk and of
considering the level of risk in the context of the organization's willingness to accept risk.
Support Function: Safety - ANSWER>>Risk identification, assessment and treatment of risks focused
on preserving the physical well-being of employees and third parties.
Likelihood, Consequences, other criteria such as timing, duration, vulnerability and
interdependencies - ANSWER>>Risk is typically analyzed on the basis of
Support Function: Information Security - ANSWER>>Risk Identification, assessment and treatment
of risk arising our of or affecting information and technology infrastructure.
To build organizational awareness, risk management creates the most value when - ANSWER>>Risk
management Aligns with strategic goals; Takes corporate culture into account; Involves key
enterprise functions
Financial Statements - ANSWER>>Internal source of information that includes financial analytics or
projections
strategic planning team - ANSWER>>The risk manager should be a part of the
_______________________ to provide the structure discipline for consideration of risks in a
strategic portfolio.
Internal Audit Reports - ANSWER>>Internal source of information that focuses on business
practices important to the goals and reflection of regulatory environment of the organization
making? - ANSWER>>Include risk assessment in planning process; Leverage cross-functional risk
assessment team and subject matter experts to identify enterprise risks; Consider cascading and
cumulative effects
Gap Analysis - ANSWER>>Technique that can be used to determine what steps might need to be
taken to improve the organization's capacity to move from a current state to a desired future state.
Risk appetite - ANSWER>>The total exposed amount that an organization wishes to undertake on
the basis of risk-return trade-offs for one or more desire and expected outcomes.
Communication and Consultation - ANSWER>>Risk management professional's role in
Implementing Risk Strategies
Support Function: Legal - ANSWER>>Risk identification, assessment and treatment of risks related
to the obligation an organization undertakes and transfers through contracting, as well as its
compliance with applicable laws and regulatory obligations.
What are the typical failures in risk management which can be avoided if it is embedded in the
decision making process? - ANSWER>>Program not integrated into strategy or its execution;
Focused on the wrong risks; Not executed in a repeatable process; Risk management is practiced in
a silo; Activity not viewed as being value added
Risks - ANSWER>>The effect of uncertainty on objectives
The chance of something happening that will have an impact on objectives
Being prepared for the worst and being poised to exploit opportunities as they are discovered
,Enterprise Risk Management - ANSWER>>A strategic business discipline that supports the
achievement of an organization's objectives by addressing the full spectrum of its risks and
managing the combined impact of those risks as an interrelated risk portfolio.
Support Function: Business continuity and crisis management - ANSWER>>Risk identification,
assessment and creation of emergency response and recovery plans related to threats or hazards
that might lead to operational disruptions
Analysis - ANSWER>>A systematic examination and evaluation of data or information by breaking it
into its component parts to uncover their relationships. An examination of data and facts to
uncover and understand cause-effect relationships, thus providing basis for problem solving and
decision making.
To embed risk management in both routine and strategic decision, what should managers be able
to recognize? - ANSWER>>The type of decision being made; Who should be included in the decision
making process; Where in the process decisions are being made
Risk management strategies' general focus - ANSWER>>Meeting or exceeding an organization's
objectives
Adhering to control-based objectives, rules and/or controls
Complying with regulatory requirements
Support Function: Internal Audit - ANSWER>>Risk identification, assessment and treatment
through audit plans with focus on fraud, corruption, regulatory noncompliance and/or
misrepresentation related to the organization's internal control systems, financial operations,
financial statements and reporting as well as enterprise risk and the organization's risk
management framework and process.
Strategic Plan - ANSWER>>Determines that actions the organization will take at any stage of the
planning period as circumstances change.
,Risk owner - ANSWER>>The individual who is ultimately accountable for ensuring that risk is
managed appropriately, including the implementation of selected responses.
Risk Identification Process - ANSWER>>Finding, Recognizing and Recording Risks
Support Function: Compliance - ANSWER>>Risk identification, assessment and treatment of risk
related to regulations that may affect the organization's ability to operate in its respective
jurisdictions, as well as activities that fall within its compliance and ethics programs.
To successfully integrate risk management into decision making, risk management professionals
will rely on strategies that draw on personal and technical skills in - ANSWER>>Building
organizational awareness; . Differentiating the different types of decisions used in varying
situations using elements of decision quality; Performing various roles in the taking risk into
account in decision-making process
Strategy - ANSWER>>A complete plan of action for whatever situations might arise in achieving an
organization's goals within the established time.
Risk tolerance - ANSWER>>The amount of uncertainty an organization is prepared to accept in total
or more narrowly within a certain business unit, a particular risk category or for a specific initiative.
Strategic Risk Management - ANSWER>>A business discipline that drives deliberation and action
regarding uncertainties and untapped opportunities that affect an organization's strategy and
strategic execution.
Value Chain - ANSWER>>The series of functions, processes, materials and activities (inputs) from
concept to the eventual end user that creates and builds value at every step in order to deliver a
product or service.
, To build organizational awareness, the risk management professional needs to do the following: -
ANSWER>>Be a persuasive communicator and facilitator; Have a clear communication plan; Engage
interested parties, including primary and secondary audiences; Demonstrate that risk management
creates the most value ; Develop feedback loops for continuous learning
Risk Analysis - ANSWER>>The process of characterizing and understanding the nature of risk and of
considering the level of risk in the context of the organization's willingness to accept risk.
Support Function: Safety - ANSWER>>Risk identification, assessment and treatment of risks focused
on preserving the physical well-being of employees and third parties.
Likelihood, Consequences, other criteria such as timing, duration, vulnerability and
interdependencies - ANSWER>>Risk is typically analyzed on the basis of
Support Function: Information Security - ANSWER>>Risk Identification, assessment and treatment
of risk arising our of or affecting information and technology infrastructure.
To build organizational awareness, risk management creates the most value when - ANSWER>>Risk
management Aligns with strategic goals; Takes corporate culture into account; Involves key
enterprise functions
Financial Statements - ANSWER>>Internal source of information that includes financial analytics or
projections
strategic planning team - ANSWER>>The risk manager should be a part of the
_______________________ to provide the structure discipline for consideration of risks in a
strategic portfolio.
Internal Audit Reports - ANSWER>>Internal source of information that focuses on business
practices important to the goals and reflection of regulatory environment of the organization
