UC Manufacturing Organization Enterprise Risk Management Q&A Discussion Question 1 A large manufacturing organization has renewed an insurance policy and

UC Manufacturing Organization Enterprise Risk Management Q&A Discussion Question 1

A large manufacturing organization has renewed an insurance policy and has accepted a significant increase in the policy deductible. What is this most likely to indicate?

Question 2

Which of the following are tools that can measure risks allowing an organization to make more risk-informed decisions?

Question 3

The key advantage a Governance Risk and Compliance framework offer when compared to retaining separate and independent risk control functions are it can promote individual risk initiatives at working levels.

Question 4

Contribution decision roles is not an access review level for assessing risk management accountability and data privileges.

Question 5

The Chief Risk Officer within a large manufacturing organization has been asked by the Board of Directors to provide an example of a pure risk. A suitable example would be:

Question 6

The consequence of a failure to identify all significant risks that an organization faces is likely to be

1. business objectives may not be achieved.

2. operating costs may increase.

3. opportunities may be overlooked.4. Risks will be better identified in the future.

Question 7

What is typically the day-to-day responsibility of a Chief Risk Officer within a large organization?

Question 8

Financial constraints could be a primary reason enterprise risk management (ERM) systems fail.

Question 9

Which type of risks are characterized by a perceived lack of control and catastrophic potential?

Question 10

When applying probability theory to a specific period of time, a measurement of 0.85 indicates that the event will never occur.

Question 11

As a direct result of recent disasters in the oil drilling and exploration sector, for companies in this sector there has been an increase in new regulations and safety controls.

Question 12

In a manufacturing organization, what is a fault tree typically designed to show?

Question 13

Which of the following would you expect to see in the context of the risk strategy of an organisation? 1-The risk and audit team report to the board quarterly. 2-The tolerance level of risk is clearly defined. 3-Ownership of risk is delegated to business units. 4-The organisation has a defined risk appetite.

Question 14

ISO 31000 risk management process, ‘monitoring and review’ is best thought of as _______.

Question 15

The determination of whether a specific risk is tolerable will involve consideration of

1. the size of the residual risk.

2. history of losses.

3. risk appetite for that risk.

4. the cost of insurance.

Question 16

A risk manager in an organization is evaluating a risk and multiplies the probability of the risk occurring with the potential impact. The result of the calculation is the production of a risk:

Question 17

Within a large global organization, ______ has the primary responsibility of identifying individual risk owners and making sure appropriate risk control activities are carried out.

Question 18

Which risk management standard places a specific emphasis on internal risk controls?

Question 19

When considering risk management within a manufacturing organization, what is a key benefit of conducting a detailed structured analysis of the entire organization?

Question 20

Which of the following is included in the phases in BI ERM implementation?

Question 21

Within a large global organization, the compliance function is normally:

Question 22

One key reason for a risk manager to review an organizational chart is to:

Question 23

In relation to a large organization’s risk management process, what does the internal audit function typically have responsibility for?

Question 24

A risk register has been produced for a large engineering company, but, one of the difficulties with a risk register is that it is impossible to update a risk register on a regular basis.

Question 25

The ISO 31000 standard separates risk management areas into:

Question 26

When implementing an enterprise risk management (ERM) framework, a large organization should be aware that ERM:

Question 27

Within an organization, when attempting to manage and control risk, the organization should be aware that:

Question 28

Dr. Robins chose to stop practicing when malpractice insurance premiums became too high for him to afford. He is managing risk by _____________ risk.

Question 29

All of the following are primary business intelligence ( BI) system functions that apply to ERM practices:

A. BI information user roles

B. BI data mining and risk notification

C. Master data management

D. Primary Decision role

Question 30

The following questions consist of TWO statements. Read each statement and consider if each one is ‘True’ or ‘False’. If Statement 1 is‘True’, consider if Statement 2 is a correct or an incorrect explanation for why Statement 1 is ‘True’.

Choose from the following FIVE possible combinations of answers where the first True/False refers to Statement 1 and the second statement 2.

In the context of the above scenario, choose the appropriate answerfrom the following.

Question 31

Purchasing insurance is a technique used to assume risk.

Question 32

A broker is undertaking a business interruption review on behalf of a client. This would most commonly include an evaluation of the effectiveness of a business continuity plan.

Question 33

A key consideration when designing an organizational risk register is that the organization’s risk profile is captured.

Question 34

The types of risk being assessed by large organizations are assessing the [a] and [b] of one of its customers

Question 35

As part of an organization’s risk management process, when considering risk and uncertainty, the risk team must be aware that risk can apply to both opportunities and threats to the organization.

Question 36

A logistics manager for a supermarket chain identifies that there is a continual delay in the deliveries to stores. What is the most appropriate technique to identify the cause of the problem?

Question 37

Silo-based risk management can be put into place at a financial organization to assess whether its risk management systems are likely to fail.

Question 38

Risk information maps are developed for only some of the business areas that affect the organization’s strategic value chain.

Question 39

A large organization is assessing a risk using a typical risk management process and has just established and identified the risks to which it is exposed. What is likely to be the next stage in the process?

Question 40

The perception of risk by senior management typically shapes the organization’s risk appetite and attitude towards risk acceptance.

Question 41

[a], [b] and [c] are the type of risk framework expected to improve efficiency by aligning strategy, processes, technology and people.

Question 42

Case Study: Foods Company is a cold storage warehouse, storing and delivering frozen foods for supermarkets. Established in 1999, Foods Company employs 30 people.

The warehouse has a good sprinkler system with a regular maintenance program in place.
Good inwards are stored on pallets and stacked in chiller units of freezer compartments.
Temperatures in the cold storage range from -5 degrees Celsius in the chiller units to -30 degrees Celsius in the freezer units.

An accident book is kept on site. Normally there are only a few minor injuries recorded but the last month has seen 2 employees go off ill and subsequently diagnosed with asthma. A potential cause is a dry atmosphere when working in extremely cold temperatures increases the likelihood of employees showing signs of asthma.

A bi-weekly meeting takes place on-site between the site manager and the health and safety manager to discuss risk management matters. The agenda for today’s meeting is risk assessment with a review of health and safety hazards and the matters discussed are restricted to operational risks.

Which one of the following would help reduce the level of risk when working in the warehouse?

Question 43

A train has crashed and is badly damaged. There have been numerous claims from injured passengers as well as a loss of revenue for the train operator. This is an example _________.

Question 44

Within an organization, business risk can typically be categorized as the:

Question 45

A key requirement for successfully implementing a governance risk and compliance framework within an organization is for:

Question 46

An international bank has identified the risks associated with economic changes in the countries in which it operates which it describes as External – Reputational.

Question 47

Understanding the potential causes of risk events will primarily help an organization to:

Question 48

An engineering company is assessing the key risks faced within the manufacturing process. Although cover is in place for most of the potential losses that may arise, the company should be aware that human error cannot be eliminated.

Question 49

It is important that an organization attempts to measure the benefits of risk management in financial terms because it will record all electronic interventions to provide an audit trail.

Question 50

Why can it be difficult for an organization to categorize risks?