CPFO RISK ASSESSMENT QUESTIONS
AND ANSWERS
How does the COSO define enterprise risk management?
A process, effected by an entity's board of directors, management, and other
personnel, applied in strategy setting and across the enterprise, designed to
identify potential events that may affect the entity, manage risk to be within its
risk appetite, and provide reasonable assurance regarding the achievement of
entity objectives.
What is risk identification?
Understand the origins, categories, and probability of risk.
What are the various risk-management approaches?
Avoiding
Accepting and Reducing
Sharing and transferring
What is Risk Evaluation?
Monitoring the frequency and severity of claims and making adjustments to
ANSWER as needed.
Loss Prevention and Control
Training, workshops, and inspection are standard loss-control strategies.
Risk Transfer
There are two primary types of risk transfer: financial risk and contractual risk
Financial risk transfer involves using an insurance firm or risk management
pool.
AND ANSWERS
How does the COSO define enterprise risk management?
A process, effected by an entity's board of directors, management, and other
personnel, applied in strategy setting and across the enterprise, designed to
identify potential events that may affect the entity, manage risk to be within its
risk appetite, and provide reasonable assurance regarding the achievement of
entity objectives.
What is risk identification?
Understand the origins, categories, and probability of risk.
What are the various risk-management approaches?
Avoiding
Accepting and Reducing
Sharing and transferring
What is Risk Evaluation?
Monitoring the frequency and severity of claims and making adjustments to
ANSWER as needed.
Loss Prevention and Control
Training, workshops, and inspection are standard loss-control strategies.
Risk Transfer
There are two primary types of risk transfer: financial risk and contractual risk
Financial risk transfer involves using an insurance firm or risk management
pool.
