BEC COSO and ERM- QUESTIONS & ANSWERS

BEC COSO and ERM- QUESTIONS &
ANSWERS
How do you manage risk and create value in a company?



("CCPIS") Correct Ans-C - Culture

C - Capabilities (competitive advantage)

P - Practices

IS - Integration with Strategy-setting and performance



What are the 5 components of Enterprise Risk Management?



("GO PRO") Correct Ans-G - Governance and culture

O - Strategy and objective-setting

P - Performance

R - Review and revision

O - Information, communication, and reporting (ongoing)



How many principles are there with internal controls? ERM? Correct Ans-IC - 17



ERM - 20

, What are the 5 principles in the ERM component of Governance and Culture?



("DOVES") Correct Ans-D - Desired culture

O - Board oversight

V - Commitment to core values

E - Attracts, develops, and retains capable employees

S - Operating structure



What are the 4 principles in the ERM component of Strategy and Objective-Setting?



("SOAR") Correct Ans-S - Alternative strategies

O - Business objectives

A - Analyzes business context

R - Risk appetite



What are the 5 principles in the ERM component of Performance?



("VAPIR") Correct Ans-V - Portfolio view

A - Assesses severity of risk

P - Prioritizes risk

I - Identifies risks (events)

R - Responds to risk