1.

______________ aim to avoid theft of and/or damage to property and premises owned or used
by the organisation.
a. Protection processes
b. Production processes
c. Manufacturing processes
d. Security processes

Answer: A

2. _______________ matters will range from general ) measures that will normally apply to every
employer through to those which are specifically relative to the sector or operations of the
organisation.

a. Health and Safety

b. Security
c. Insurance

Answer: A

3. Statement 1. Most areas of operational risk can be offset by the provision of suitable and cost-
effective insurance and we shall also be looking at the arrangements for insurance cover

Statement 2. Without obtaining an accurate assessment of the inherent risks, management

cannot expect to react accordingly and cost-effectively.

a. False, False
b. True False
c. True, True
d. False, True

Answer: C

4. Statement 1: When considering the broader implications of security, account should also be
taken of matters beyond the physical—for example, of less tangible elements such as corporate
data or intellectual property.

Statement 2. So that management can take appropriate, adequate and cost-effective steps to
prevent or contain such disruptions, it will be necessary for them to take a realistic view of their
situation from a risk assessment standpoint.

a. False, True
b. True, True
 c. True, False
d. False False

Answer:B

5. Statement !. Management will need to be assured that all the relevant and prevailing
regulations are being complied with.

Statement 2. It is crucial that staff are fully aware of their responsibilities and are suitably
trained in the use of any required safety equipment.

a. True, False
b. False, False
c. False, True
d. True, True

Answer: D

6. __________ is a contract, represented by a policy, in which a policyholder receives financial

protection or reimbursement against losses from an insurance company.

Answer: Insurance

7. Statement !. Where an organisation is involved in trading, the loss of or damage to stock not
only represents an unwanted disruption, but may actually result in an inability to continue
operating.

Statement 2. One of the essential elements of any effective control environment is the practice
of risk assessment

a. True, False
b. False, False
c. False, True
d. True, True

Answer: D

8. Statement 1. One of the control objective for Insurance is to ensure that adequate and
appropriate security measures are in place in order to protect assets, persons and business
activities.

Statement 2. One of the control objective for Security is to prevent unauthorised access to
company premises and to account for the movement and access of all visitors.
 a. True, False
b. False, False
c. False, True
d. True, True

Answer: C