TOPIC

Advanced Management Approach (Basel II)

Agriculture and allied service loans
Allignment of risk with strategy
Alpha
Altman Z Score
Analyses of approaches
Artificial intelligence
Audit risk and sampling
Authorisation/approval on OR
Automated controls on OR
Bank Guarantee
Banking regulation on OR
Basel II
Basis of preparationa nd Presentation
BCBS Basel committee on banking supervision - Principles for Sound Stress Testing
Beta
Big data technologies
Bill discounting
Bootstrap Simulation
Borrower/Transaction Specific Risk Management (5 C)
Bottom up stress test
Bowtie Analysis
Brainstorming
Brexit Impact
Business analytics and artificial intelligence
Business Continuity Plan
Business continuty plan (BCP)
Business functions assessed from risk perspective
Business Impact Analysis - Activities , Considerations
Business impact analysis (BIA)
Business Model
Business performance indicators
Business Risk
Capital adequacy
Capital allocation
Capital budgeting technique
Case example - Risk management at core of business strategy
Cash Credit
CashFlow analysis
Catching the ball
Cause and effect of risks
Cause models/ Cause analysis
Checklists
Chemical accidents (Bhopal disaster)
Chemical, nuclear hazards
Chief Information Security Officer
Chief Risk Officer
CIMA official Terminilogy 2005
CIMA official terminology 2005 -ERM
Classification of assets
Classification of Business risk
Classification of risks
COBIT, ISA CA
Coherent Risk Measures
Collateral (Funded mitigation methods )
Collateral / Security
Collateral risk
Colour Coding
Companies act 2013 (sec 134,177)
Comparison with other organisations (BENCHMARKING)
Competitive Pressure
Compliance management business function
Concentration risk
Consequence scale
Content elements
Contingency planning
Control (or uncertainity) risks
Control risks
Controllable risk
Controls
Cornelius Keating
Corporate Knowledge
Corporate Risk Management
Corporate risks - Table (Corporate Functions/ Risk areas)
Corporate stakeholder
Corrective controls
Corrective measures
Corruption Perception Index
COSO - Operations, financial reporting, compliance
COSO ERM Framework
Country Risk - Types
Country Risk Assessment Tools
Country Risk Management Process
Covenants
Credit default Swaps
Credit default Swaps - Key features
Credit Due Diligence for Retail Financing
Credit Due Diligence for Wholesale Financing
Credit Facilities - Types
Credit Insurance
Credit Insurance
Credit Loss Estimation
Credit Rating scales for long term instruments
Credit Rating Agencies
Credit Risk - components / (Basel II)
Credit risk - evaluation
Credit Risk - Factors (Internal and external)
Credit Risk - Funded mitigation methods
Credit Risk - Identification
Credit Risk - Measurment in Banking transaction
Credit Risk - Mitigation (funded and non funded)
Credit Risk - rules to assess credit risk
Credit Risk - Unfunded mitigation methods
Credit risk in Capital Market
Credit risk Management - Qualitative Techniques
Credit risk rating process - (Probability of default , Loss Given Default)
Credit risk/ Counterparty risk
Credit Scoring Models - Types
Credit Scoring Models / Scorecards
Critical disruption in business process
Criticality of IT
Culture monitoring survey
Cyber risk and information security control
Cyber Risk- migration of risk
Cyber risk on OR
Cyclical LGD- Point in time LGD
Cyclones
Data Security and regulatory breach
Decision Tree
Default (definition as per Bank for International settlement)
Default risk
Delphi approach
Delta Normal Method (Linear Method)
Demand Loan
Democracy Index
Description , evaluation of framework for Board Level risk consideration
Detective controls
Detective controls on OR
Detective measures
Deterrent controls
Direct Observations
Disaster Recovery Plan in IT risk management
Disaster Recovery Plan- Testing
Disclosing risk profile
Disclosures about Derivative FI and FV of FI
Distributed ledger technology
Diversification (Credit risk mitigation)
Documented Knowledge
Doubtful assets
Downturn LGD
Due Diligence
Dynamic risks
Earthquake
Economic capital (VaR and RAROC)
Economic Risk and causes
Encryption solution, Firewall solutions
Enterprise risk management - definition and scope
Enterprise risk management as business differentiator
Entity level policies
Environmental risk analysis (ERA)
Epstein and Rejc 2005 - risk management payoff model - benefits
Equifax
ERM
ERM - Activities covered
ERM - can help organisations
ERM - Techniques (ISO 31000 suggest keys to ERM implementation)
ERM- Process and internal audit
ERM- stakeholder value creation
ERM v/s IC
ERM-Implementation
Ethical climate survey
Event driven tool
Exception triggers
Exchange Control Risk
Expected Loss
Expected monetary Value
Expected Shortfall (aka expected tail loss, conditional VaR, tail VaR) - Advantages
Experian Natonal Equivalency Score
Experiential Knowledge
Expert Judgement
Expert systems
Exposure at Default
Exposure risk
External environment
External risk
External risk on OR
Extreme Risk
Factor / Casual analysis
Factoring
Failure of IT - Reasons
Fault Tree analysis
FICO Score
Financial and Economic risk
Financial business function
Financial loss on OR
Financial market and Free market
Financial Planning and Budgeting
Financial reporting error on OR
Financial reporting on OR
Financial risk
Financial risk definition
Financial risk on OR
Fire
Flood
Flow chart with risk flags
Fraud risk on OR
Fraud risk parameter on OR
Freedom in world
French - risque - to - dare
Frequency of loss
Frog in the well
Full Revaluation Method
Functional recovery plan (FRP)
Fund based Facilities
Fundamental risks
Gaming
Gini Coefficient
Global Peace Index
Global risk indicators
Governance Risk
Governance structure to create value
Grade based rating
Hazard (or pure) risks
High value Threats and Risks Analysed
Historical Simulation
Homogeneity
Human Development Index
ICAI guidance note on OR
ICAI guide on Risk Assessment Methodologies and Application
ICAI guide on risk based internal audit
ICAI guide on Risk based internal auditing
ICAI risk based Internal audit guide
ICAI SA 315
ICAI's standard of internal audit
Idea funnel
Impact of Business Risk
Impact of Risk - Risk Classification
Impact of Risk - Nature and Areas
Impact on Stakeholders inolved in business risk
Impact/severity on OR
Important definitons of Risk, IT risk, audit risk
Incident analysis
Information System audit
Infrastructure loan
Inherent risk and residual risk
Inherit risk on operational risk
Institute of internal auditors
Institute of risk management (IRM)
Insurance
Insurance
Insurance and risk management systems
Integarting risk with performance
Integrated report
Integrated Reporting Framework
Integrated Risk Report
Integrated risk reporting and stakeholder responsibilities
Integrating risk in the strategic planning process
Integrity leaders
Internal and external factors causing business risk
Internal Audit - areas of responsibility in risk management
Internal control environment & linkages with risk mgt
Internal control environment ICE
Internal Federation of accountants 1999
Internal Outcome
Internal Risk
Internal risk and external risk
International integrated reporting council (IIRC)
International organisation for standardization
Internet of things
ISO 31000 risk management standard
ISO 31000, ISO 9000, ISO 31000 on OR
ISO guide 73 ISO 31000
IT Risk - security risk
Italian - risco- danger - risicare - to dare
Judgement and Intuition
Key quantitative Information
Key risk indicators (KRI) and scenario analysis (RCSA v/s KRI)
Knowledge management business function
Knowledge risk
Legal risk on OR
Lessons learnt
Letter of Credit
Level of risk
Likelihood scale
Limit setting
Line of business/departmental policies
Lines of defence
Listing agreement clause 49
Long run LGD (Through the Cycle LGD)
Loss assets
Loss Given Default (LGD)
Loss given Default Estimation
Machine learning
Machine learning - classification methods
Management Discussion and Analysis
Management Discussions and Analysis (US SEC)
Manual controls on OR
Maximum Possible Banking finance - Methods
Miro finanace loans
Money Laundering risk management
Monotonicity
Monte Carlo Analysis (in simulation)
Monte Carlo Simulation
Mortgage loan
Nationalisation / Expropriation Risk
Natural language processing
Near - default Stress Scenario
Non Fund Facilities
Non Performing Asset
Normal Stress scenario
Numeral Coding
OECD - Principles of Effective implementation of Risk Management
OECD - Organisation For Economic Corporation and Development for Corp.Gov

OECD Corporate Governance - Basis of effective Corp gov. framework Equitable

treatment and rights of shareholders Institutional
investors, other intermediaries Role of
stakeholder in CG
Disclosure and Transparency
Responsibilties of Board
On Balance Sheet Netting
Open group standard
Open Group standard - Effect (Catastrophic, Critical, Marginal, Negligible)
Open Group standard - Frequency (Frequent, Likely, occasional, seldom, unlikely)
Operation loss event - corrective action
Operation loss event - Identification
Operation loss event - quantification
Operation loss event - reporting
Operational business function
Operational loss data - Basel II comprehensive list extract
Operational loss data management
Operational risk
Operational risk
Operational risk - Relevance
Operational risk definition - Basel II
Operational Risk- Effective policy framework
Operational risk management committee (ORMC)
Operational Risk management governance
Operational risk management policy
Operational risk orgination
Opportunity risks
Oppurtunity (or Speculative) risks
Organisational Overview and External environment
Organisational Risk
Other Business Risk Measurements
Other Qualitative techniques of CRM
Outlook in integrated risk reporting
Outsourcing
Outsourcing risk
Overdraft
Oxford English Dictionary
Packing Credit
Parameters set by ORMC
Particular risks
Paul hopkins
Performance in integrated risk reporting
Performance measurement and management
Personal loan
Personal risk, Property risk, Liability risk
PESTLE, TPS, STEP, STEPE, PEST, STEEPLE, PESTLIED, STEEPLED
Physical control on OR
PLUS Score
Policies/ Procedures (CRM)
Political risk
Pooling method
Portfolio Risk Management
Portfolio Risk Management on CRM
Positive Outcome
Predictive Models
Preventative controls
Preventive controls on OR
Preventive measures
Pricing
Principal Risk Factors
Probability of default
Probability of default Estimation
Probability/frequency on OR
Process notes/ standard operating procedures (SOP)
Qualitative Analysis Matrix (Grid)
Qualitative risk assessment (Risk Probability and Impact Matrix)
Qualitative Techniques (most widely used)
Qualitative tool for country risk assessment
Quantification of Risk and various methodologies
Quantitative Risk Assessment
Quantitative Risk Assessment - Decision Making Tree method
Quantitative Risk Assessment - Tools and Techniques
Quantitative Techniques
Quantitative techniques of CRM
Quantitative tool for country risk assessment
Questionnaires & interviews
R Squared
Ratio and Financial Assessment
Real Estate Construction Loan
Real time data
Real time risk (eg Knight capital group (KCG)) (Basel III - Real time risk for bank)
Reconciliation
Recovery risk
Regression methods - Business analytics
Regulatory risk on OR
Regulatory violation on OR
Reputation risk on OR
Reputational loss on OR
Residual risk and rating/grading
Responsibilty of Risk Management Committee in identifying risk
Retail Financing
Retail Financing on CRM
Return on Risk adjustd capital
Risk - Return Trade off
Risk - Source Matrix
Risk treatment
Risk adjusted return/capital
Risk and control matrix (RCM)
Risk and control self assessment (RCSA)
Risk and Opportunities
Risk and Opportunity Reporting
Risk and Opportunity Reporting (ROR)
Risk and psychology
Risk and risk management - Views
Risk and uncertainity
Risk appetite - Determination
Risk appetite - Principles and approach
Risk appetite statement
Risk Architecture
Risk assessment
Risk Assessment - Role wrt Financial reporting
Risk Assessment Procedures wrt Financial Reporting
Risk Attitude, Appetite and tolerance - Meaning
Risk attribute - Likelihood of risk
Risk attribute - Risk consequence
Risk based audit approach on OR
Risk Based Internal Auditing
Risk based maintenance and Reliability centered maintanance
Risk based pricing
Risk capacity vs Risk appetite
Risk categories by COSO
Risk Commiittee
Risk Components for credit risk quantification
Risk control sefl assessment (RCSA)
Risk culture - emphasis
Risk culture and attitudes to risk mgt
Risk culture development
Risk definition - Occupational health & safety advisory services (OHSAS)
Risk definition by ERP
Risk definition in Information Security
Risk Evaluation - 2 primary questions
Risk Evaluation - considerations
Risk evaluation - purpose
Risk event maps
Risk event probability and risk event value
Risk focus integrity
Risk Free condition
Risk Governance - Sound Practices by Audit committee
Risk Governance - Sound Practices by BoD
Risk Governance - Sound Practices by Chief Risk Officer
Risk Governance - Sound Practices by Risk committee
Risk Governance / Management Framework - Assessment
Risk grading/Rating
Risk heat maps
Risk identification
Risk identification - questions to ask
Risk identification - analysing risk and determining how risk should be managed
Risk identification - Organisations exposure to Uncertainity
Risk identification - Participants
Risk identification - Quantitative and Qualitative Risk analysis
Risk Identification - Sources
Risk Identification - Specific Tools
Risk identification and Assessment approaches (Tony Harb B)
Risk identification and risk types
Risk in an organizational context
Risk management
Risk Management - Importance
Risk management - ISO 31000
Risk Management - Objectives and Process
Risk Management - Techniques
Risk management and IC
Risk management applications- analytics
Risk management case studies
Risk Management checklist (ISO 31000)
Risk management committee - Composition
Risk management cycle
Risk management disclosures in INDIA - Indian Scenario (CA 2013, SEBI LODR Reg)
Risk management disclosures in INDIA - Global case study
Risk management disclosures in INDIA - Global scenario (SEC)
Risk management disclosures in INDIA - Risk and opportunities (Indian example) Risks, Macroeconomic, Financial,
Regulatory, Climate change, Operational, Market related, People, Opportunities
Risk Management Framework empowers Board to

Risk Management Framework, Approaches and Techniques (Pandemic, Natuural calamities, Terrorist attack)
Risk Management Function
Risk Management Plan - Benefits
Risk management strategy alignment with business strategy
Risk maturity of an organisation
Risk Measurement
Risk measurement against limits
Risk measurement and reporting
Risk mitigation
Risk mitigation measures
Risk perception
Risk protocols
Risk Quantification
Risk Quantification - Outputs
Risk Quantification is complicated by 2 factors
Risk Questionnaires
Risk Rating table
Risk register
Risk Reporting disclosures to stakeholders and investors
Risk Reporting disclosures to stakeholders and investors - SEBI LODR Reg.
Risk responses (Avoid, Reduce, Transfer, Accept)
Risk scorecards
Risk Strategy
Risk types caused by operational failures
Risk vs uncertainity - Douglas Hubbard
Risk vs uncertainity - Frank Knight
Risk word derived
Risky Corp
Role of Enterprise Risk Management Function - IBM case study
Role of Risk Management Committee in identifying risk
Role of Risk Manager in identifying risk
Root Cause Analysis
SA 315 - Business Risk definition
SA 315 - Risk affecting Financial Reporting
SA 315 - Risk Assessment Procedure definition
SA 315 - Significant Risk definition
SA315-paragraph (4c)-internal control
Sarbans oxley (SOX) regulation
Scenario analysis
Scenario analysis
Scenario Analysis - Drawbacks
Scenario analysis in risk model
Scenario Selection
Scoring
Segregation of duties
Selldown/ Syndication/ Securitization
Service level agreements
Severe Stress Scenario
Sharpe Ratio
Simulation
Smart risk management strategies
Sound Risk Governance Practices by Financial Stability Board - 2013
Sovereign risk
Special Mention Asset Classification
Speculative risks
Stakeholder Analysis
Stakeholder risk analysis and nature of impact
Stakeholder risk management
Stakeholder value creation by ERM
Standard asset
Static risks
Statistical method
Statutory violation on OR
Stipulation of covenants
Strategic business function
Strategic context
Strategic Objectives and Resource allocation
Strategic planning
Strategic risk
Stress scenarios - Categories
Stress Test
Stress Testing
Stress Testing - process
Stress Testing - Roles, Applications
Stress to default Scenario
Striking balance btw Action and Reaction
Structing of transaction
Structural method
Sub standard asset
Subadditivity
Successful stakeholder risk management
Supervised learning
Supervisory controls
Supporting our culture of integrity
Surveys
SWOT
Taxes, rule and regulation risk
Technology risk on OR
Term Loan
The risk management standard, The institute of risk management
Theodore Roosevelt
Third party guarantee risk
Thomas S. Coleman, Practical guide risk management, CFA Institute
Threats
Traffic Signal Risk Card
Transaction Risk Management
Two way risk
Uncontrollable risk
Understanding of controls
Unexpected loss
Unilever code of business principles
Unsupervised learning
Value at Risk
Value at Risk - Computation
Value at risk technique
Vantage Score
VaR - Limitations
VaR Conversions and VaR Parameters
VaR Methods
Verification on OR
Vision Statement
Vision systems
VUCA - Complexity, Volatality, Ambiguity and uncertainity
Vulnerabilities
Warren Buffet
Websters new world law dictionary ERM
whatif Techniques
Wholesale Financing
Wholesale Financing on CRM
Why risk is classified ?
Working capital analysis (A/c receivable days, inventory days, Payable days, current ratio)
Working capital loan
Working Groups
Workshops
World Economic forum
Pg. No.
2.22
6.7
4.3
6.28
6.26
2.10
9.35
7.9
9.16
9.16
6.7
9.5
1.6
4.15
5.13
6.28
9.34
6.6
5.5
6.13
9.34
2.11
2.10
7.14
9.33
4.20
9.22
2.3
2.24
9.22
4.12
4.5
1.2
5.9
5.10
3.12
4.4
6.6
6.32
1.18
2.13
2.10
2.11
1.8
2.18
9.27
7.2
1.5
8.2
6.8
1.10
1.16
1.6
5.5
6.10
6.25
6.3
5.16
9.3
2.12
7.13
2.3
6.18
2.25
4.10
5.9
1.16
1.17
1.10
2.8
1.6
2.12
7.17
1.9
2.27
2.8
4.19
5.17
1.11
8.3
5.15
5.16
5.16
6.12
6.21
6.22
6.14
6.14
6.4
 6.12
6.24
6.19
6.16
6.15
6.2 and 6.11
6.8
6.4
6.10
6.9
6.3
6.9 and 6.10
6.8
6.11
6.2
6.12
6.18
6.1
6.34
6.34
9.22
4.18
4.6
9.26
9.27
9.13
6.21
2.18
7.14
2.9
6.20
6.2
2.7
5.4
6.6
5.17
7.16
2.8
9.16
4.19
2.8
2.12
4.18
4.20
4.5
 4.16
9.35
6.12
2.12
6.8
6.21
6.9
1.17
2.18
6.29 and 6. 30
1.7
9.27
8.2
7.20
9.9
1.8
8.8
6.36
4.2
8.3
8.2
8.5
8.8
8.8
4.6
8.3
4.6
5.17
9.16
5.15
6.19
2.8
5.6
6.36
2.12
2.9
9.35
6.20
6.3
4.11
1.10
9.11
1.3
2.10
6.6
4.19
2.11
6.34
5.15
2.3
9.12
1.7
5.9
9.12
9.11
1.11
1.7
9.11
2.17
2.18
3.12
9.11
9.13
5.17
3.1
2.9
1.3
5.4
9.23
6.5
1.17
9.35
5.17
5.18
2.18
7.1
4.12
5.17
1.16
2.17
5.5
5.6
5.18
9.4
2.13
1.13
1.2
1.6
1.5
1.11
1.18
2.22
2.24
2.23
2.26
9.14
1.5
2.12
2.10
6.6
1.11
9.10
1.5
1.5
2.22
9.36
3.10
4.5
4.10
7.12
4.9
4.9
4.4
4.9
1.19
7.8
4.6
4.6
1.5
4.13
1.10
2.15
4.9
1.6
7.19
8.3
9.5
1.5
1.8
3.1
2.7
4.11
9.21
2.3
1.11
9.11
2.12
6.7
2.25
2.25
5.9
9.9
9.7
9.4
6.21
6.8
6.20
6.21
9.33
9.33
7.11
4.16
9.16
6.5
6.7
9.34
5.6
2.9
5.5
6.5
5.15
9.35
5.12
6.7
6.8
5.11
5.16
2.33
7.20

7.21
6.10
1.12
1.12
1.12
9.32
 9.31
9.31
9.32
2.3
9.28-9.31
9.28
1.11
9.1
9.3
9.1
9.9
9.6
9.6
9.6
9.2
1.17
1.16
4.10
2.19
2.9
6.25
4.15
2.22
9.25
6.5
1.5
6.6
9.12
1.17
1.5
4.14
5.10
6.5
1.16
2.20
9.15
6.35
6.12
5.15
6.20
6.12
6.17
4.13
2.10
2.8
 9.16
4.19
5.10
7.13
6.20
6.20
9.14
9.9
2.5, 2.6
2.5
2.8
5.16
2.4
2.6
2.6
2.7
2.8
6.26
5.17
2.11
6.28
6.31
6.7
9.34
1.7
9.15
6.3
9.33
9.11
9.12
9.11
9.13
9.14
2.31
6.4
6.17
6.29
6.2
2.16
2.20
6.28
9.10
9.10/9.17
4.13
4.15
7.13
1.8
3.2
1.14
3.3
3.4
5.9
3.8
2.4
7.7
7.6
3.3
1.13
1.13
9.4
7.8
1.9
6.12
3.3
1.11
7.3
6.19
9.17
4.8
4.8
4.8
1.7
1.4
1.7
2.14
2.25
2.14
3.12
2.8
4.8
5.6
7.4
7.3
7.4
7.3
7.6
9.12
3.12
2.1
2.13
 2.2
2.2
2.2
2.4
2.14
2.20
2.10
9.10
1.9
3.1
3.9
3.6
3.5
3.11
4.7
9.34
3.12
3.8
7.10 point no. 6
3.5
7.9 and 7.10
7.13
7.12

7.14
3.10

7.18
7.5
3.10
4.2
8.7
2.4
5.9
5.9
2.10
2.21
1.4
3.8
2.5
2.9
2.7
3.12
2.25
8.4
4.16
4.17
2.21
3.12
3.8
9.11
1.14
1.14
3.1
6.22
2.32
2.30
2.29
2.19
1.5
2.3
1.6
1.4
9.4
9.4
2.9
2.11
5.12
5.11
5.12
2.8
9.15
6.26
2.22
5.11
6.28
2.9
4.2
7.2
5.15
6.18
1.17
2.12
2.28
2.29
2.29
6.8
1.17
6.20
9.12
6.25
2.3
4.2
4.14
5.9
1.11
5.11
7.6
5.7
5.10
5.8
5.12
7.20
6.25
6.20
6.8
5.6
8.8
9.33
9.16
4.8
2.12
2.15
5.15
9.17
6.6
3.2
3.2
6.3
3.2
2.8
2.5
6.12
6.2
1.10
9.15
6.19
4.4
9.33
5.1
5.2
3.12
6.35
5.7
5.3
 5.4
9.15
3.5
9.35
1.15
2.8
3.2
8.2
2.11
6.4
6.17
1.12
6.32
6.5
2.12
2.12
2.18
1) 5 key dimensions of responses to risk :
Strategy, People, Detail,Tasks and Drivers

2) Risk governance framework comprises Risk Appetite Framework, Risk Apepetite Statement and Risk Limits

3) Interna audit is a management function serving the management through constructive reccomendations in areas of internl

4) Non sampling audit risk can be reduced by adequate planning, supervision, proper conduct of audit

5) Various risk variables : Legal, Social, Community, Political

6) Multiple types of risk assessment- program risk assessment, investment decision risk assessment, analysis of alternatives, a

7) Risk identification is followed by risk assessment which involves: evaluating risks for probability, cost implications, prioritisa

8) Macroeconomic scenarios using regression based techniques explain historical losses in the fom of defaut, loss severities an

9) Germany's Risk reporting standard - GAS 5

10) Disruption of business operation lead to loss of productivity, revenue and market share

11) Disaster recovery plan - plan for disaster recovery, crisis management, recovery operations

12) Strategies of DRP - Preventive, Detective, Corrective

13)BCP includes establishing continuity strategies, planning for continuity of critical operations, continuity management

14) Random loss = D*A*(1-r) where D= default % A= amount of exposure r= recovery rate

15) Portfolio Risk management monitors Early Warning Signals

16) Major risks applicable to org: Financial risk, Credit risk, Liquidity risk
Major risks applicable to org: Market risk, Operational risk, Strategic risk, Compliance risk, Regulatory risk, Reputation risk
Major risks applicable to org: Legal risk, Interest rate risk, Foreign exchange rate, Managagement risk
Major risks applicable to org: Staffing risk, Technology risk, Business continuity risk, Information risk, Country risk
Major risks applicable to org: Fraud risk, Price risk, Process risk, Security risk, Governance risk, Safety risk

17)Magnitude of risk = degree of uncertainit + likelihood of occurrence = impact of risk outcome

18) Difference between inherent and residual risk = Control Score

19) Risk Score= Numeric multiple of Likelihood of risk occurrence and consequence

20) Risk attitude can be risk averse, risk neutral or risk seeking
21) Risk appetite can be complex
Measurable
Fixed concept
Should be developed according to organisations risk mngmt capability
Integrated with control culture

22) Risk Management Primary functions

Risk Identification
Risk Assessment
Risk Mitigation

23) Step by step process of risk mngmnt

Step 1: Identify the risk
Step 2: Analyse the risk
Step 3: Evaluate or rank the risk
Step 4: Treat the risk
Step 5: Monitor and review the risk

24) Risk management techniques - Tolerate, Transfer, Terminate, Treat

25) Operational risk includes legal risk, excludes strategic risk and reputational risk

26) Important risk linked to operational risk:

risk of non cmpliance to laws
risk of fraud loss due to internal or external event to make unlawful gain
risk of financial losses
risk of incorrect financial reporting

27) Operational risk forms part of ERM framework

28) Lines of defence

I. first line of defence - dpt/function that own the process
II. second line of defence- operational risk department
III. third line of defence - internal audit

29) Bucketing risk profile into

high imapct- high probability
high impact- low probability
low impact-high probability
low imapct- low probability

30) main issues on technology risk :

unscheduled system downtime
system failure pertaining to incorrect programming
master maintanance
user access control
accounting systems
change management
information technology general controls (ITGC)
user acceptance testing (UAT)
migration risk
technology outsourcing risk

31) Cyber risk includes confidential data

trade secret software programs stolen
malevolent attack
ransomware
phishing

32) Machine learning techniques : Regression, Support vendor machines and k means clustering

33) Machine learning techniques : Deep learninga nd reinforcemnt learning

34) Business data analytics use Advanced statistical analysis of structured data and Advanced visualisation and statistical text m

35) Risk maturity levels and key charcterstics

risk naïve
risk aware
risk defined
risk managed
risk enabled

36)Strategic blunders are caused by:

inability of business to learn form past
lack of sufficient planning
ignoring customer needs
pre mature scaling
on boarding costly capital
nl control, risk, utilisation of resourcs, compliance with laws, MIS

, assessment of operational/ cost uncertainity.

tisation and impact assessment

and exposure details.

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xt mining of unstructured data

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