M2 Quiz 1

TRUE OR FALSE

Risks can come from uncertainty in financial market, project failures, and legal liabilities. 

Risk management can be developed separately from the organizational rules and values.

Establishing the context involves mapping out the social scope of risk management. 

Performance assessment methods include identification of ways to reduce risks.

An example of liquid asset is a house in a market with an abundance of homes relative to

the number of potential buyers.

Technological Obsolescence is an example of operations risk.

Risk Avoidance involves reducing the severity of the loss or the likelihood of the loss
from occurring.

Risk Sharing means sharing with another party the burden of loss or the benefit of gain,
from a risk, and the measures to reduce a risk.

The Internal Auditor should oversee that sound enterprise risk management framework
is in place to effectively identify, monitor, assess and manage key business risks.

The first step in risk management process is hiring an expert. 

M2 Quiz 2

TRUE OR FALSE

The first stage in managing an enterprise-wide risk inherent in decisions is to assess and
analyze the risks resulting from a decision by systematically identifying and quantifying
them.

One way of managing and control and monitoring risks is through creating a positive
climate for managing risk.

Variance Analysis involves comparison of previous year financial performance against

the current year. 

Break-even analysis can be used to decide whether to alter the price of the product.

To control costs involves totally eliminating wastes.

To improve profitability, focus on the profitable products and disregard the unprofitable
ones. 

In order to avoid pitfalls, consider the impacts of the financial decisions. 

Identifying the extent the company would be exposed if key staff left is form of
managing the risks. 

Understanding how organizations manage risks effectively is important, but managing

risk is only one possible strategy. 

Recognizing the need to manage risk is enough to manage the risks.