This includes 6 steps that are used by the risk management team and the CRO
What is the risk management process
100
Refers to a comprehensive, organization-wide approach to identify, measure and manage various risks that threaten the company
What is enterprise risk managment
100
Risk of indirect or direct losses resulting either from external events or internal processes
What is operational risk management
100
preserve revenue stream
What is disaster recovery and business continuity
100
Transferee agrees to pay designated types of losses of the transferor within a contractual limit
What is risk transfer
200
Analysis that changes one variable while holding all else constant to identify variables that have the greatest influence on cash flow
What is sensitivity analysis
200
Risk that is associated with volatility of stock prices
What is equity price risk
200
Generally from functional areas
What is process risk
200
Corrective action should be implemented for ____ impacts
What is high
200
prevents unjust enrichment of filling a claim with multiple companies
What is subrogation
300
More than one variable is altered to get "best" and "worst" situations
What is scenario analysis
300
Risk related to day-to-day management of a company
What is business risk
300
Generally intentional fraud
What is employee fraud
300
factors that create significant disruptions in an organization's business
What is mission-critical factors
300
Requires careful forecasting to expected losses and future cash
What is self-insurance
400
Requires public companies to perform risk self-assessments and test them regularly
What is SOX
400
Risk the company won't be able to raise enough cash to cover operations and able to sell assets quickly close to value
What is liquidity risk
400
Combated by adequate controls and top down management with emphasis on implemented policy that is regularly maintained
What is external theft/fraud risk
400
Two functions: 1 identify problems and 2 train staff
What is performing period testing
400
When selecting insurance one should consider ____term solvency of the insurer
What is long
500
Assume a company has determined the following:
Standard deviation for an investment is .008
VaR level of 5%
Company is value at 50million
The company wants to know the worst loss that could be expected in a single day
What is -$600,000
500
Examples are:
Ensure effective reporting and compliance to regulation
Allow company to assess risk across many lines
What is benefits of ERM
500
A fairly new insurance program will cover this risk but is up for debate at the end of the year (TRIA)
What is terrorism risk
500
Coverage that provides payments to an organization in the event it is unable to pursue a normal line of business for some time period due to an unforeseen event