Q-1- Within a large global organisation, who has the primary responsibility of identifying individual risk owners and making sure appropriate risk control activities are carried out?
- Risk Manager
- Risk Committee
- Chief Risk Manager
- Board of Directors
Option-3 In large global organization,Primarily responsibility is of Chief Risk Manager.
Q-2- In relation to a large organisation’s risk management process, what does the internal audit function typically have responsibility for?
- Preparing designated parts of an up-to-date risk register
- Setting detailed targets and objectives within the Board remit
- Providing detailed assurance that risk management processes are effective
- Helping to evaluate existing risk controls in specified areas of the business only
Option-3 Providing detailed assurance that risk management processes are effective.
Q-3- An organisation operates with separate and independent risk management,
compliance and audit functions. The organisation’s board of directors should be aware that
- all costs will be reduced and more risks will be eliminated
- this is likely to create a more robust approach to managing risk
- work will often be duplicated and costs will usually be increased
- holistic risk management processes will be more effective across the organization
Option-4work will often be duplicated and costs will usually be increased.
Q-4-A risk register has been produced for a large engineering company. What is a key difficulty of such a register?
- It is impossible to update it on a regular basis.
- It is likely to list only a very small number of risks.
- It may fail to take account of correlations between risks.
- Stakeholders must be consulted upon all risk management decisions.
Option-3It may fail to take account of correlations between risks.
Q-5-What is a key consideration when designing an organisational risk register?
- The organisation’s risk profile is captured.
- All staff can update and accept new risks.
- It is always installed on a web-based system.
- All staff receive training on updating the register.
Option-1 The organisation’s risk profile is captured.
Q-6- Why is it important that an organization attempts to measure the benefits of risk management in financial terms?
- It will improve the delivery of services to customers.
- It will ensure faster recovery from emergency incidents.
- It will record all electronic interventions to provide an audit trail.
- It will quantify the level of internal and external resources that are required.
Option-2It will quantify the level of internal and external resources that are required.
Q-7- When considering risk management within a manufacturing organisation, what is a key benefit of conducting a detailed structured analysis of the entire organisation?
- It would identify all counterparty risks that affect financial stability.
- It would identify alternative production methods and remove all risks.
- It would allow the organisation to develop silo-based risk management techniques.
- It would uncover weaknesses and provide valuable information that can be used to improve processes.
Option-4 It would uncover weaknesses and provide valuable information that can be used to improve processes.
Q-8- A key influence on the evolution of risk management theory in the 19th Century was based on
- calculating the standard deviation of a distribution around a mean.
- mathematicians collecting measurements to provide statistical data.
- placing a greater emphasis on the human element of decision making.
- economists analysing the relationship between unemployment and interest rates.
Option-2 mathematicians collecting measurements to provide statistical data.
Q-9- How did the large fluctuations in prices of many raw materials and commodities in the 1970’s influence the evolution of risk management?
- An increase in the use of captive insurers.
- Derivatives being used as a risk management tool.
- The development of business continuity planning.
- Financial institutions increasing their market and credit risk management services.
Option-2 Derivatives being used as a risk management tool.
Q-10- Insurance policies issued by a commercial insurer operating solely in the UK are directly governed under which Act?
- Insurance Act 2015
- Sarbanes-Oxley Act 2002
- Financial Services Act 2012
- Consumer Insurance (Disclosure and Representations) Act 2012
Option-1 Insurance Act 2015