Risk Management 2023/24 (100% CORRECT ANSWERS)

Risk correct answers possibility of an event occurring that will have an impact on the achievement of objectives. Measured in terms of impact and likelihood Risks may be financial, operational, legal or regulatory, or strategic. Risk Management correct answers Process to identify, assess, manage and control potential events or situations to provide reasonable assurance regarding the achievement of the organization's objectives The internal audit activity must evaluate the effectiveness and contribute to the improvement of risk management process. Risk Management is a key responsibility of senior management and the board. Risk Management Process Steps includes correct answers 1) Identification of context 2) Risk identification 3) Risk assessment and prioritization (risk analysis) 4) Risk response 5) Risk monitoring Risk management processes may be formal or informal, quantitative or subjective, or embedded in business units or centralized. They are designed to fit the organization's culture, management style and objectives. EX: a small entity may use an informal risk committee. the IAA determines that the methods chosen are comprehensive and appropriate for the organization. Steps of Risk Management Process correct answers 1) Context 2) Identify Risk 3) Assess and Prioritize risks identified 4) Response 5) Monitor response