What are the key obstacles in an organisation to integrate risk management with the
overall business strategy?
a Fear of creating a risk-averse and bureaucratic culture.
b The board does not understand or appreciate the principles and benefits of
ERM.
c Competition with other priorities.
d Directors consider risk management a task of line management and not the
board.
Choose the correct combination:
1.
a, c
2.
a, b, c
3.
b, c, d
4.
all of the above
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all of the above
Question 2
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Indicate the correct statement.
1.
Risk implies the presence of uncertainty.
2.
Risk is the deviation of the expected result from the actual result.
3.
The probability of an event refers to its short-term frequency of occurrence.
4.
, Uncertainty arises from a person’s perfect state of knowledge about future events.
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The correct answer is:
Risk implies the presence of uncertainty.
Question 3
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In terms of the King III Code of governance principles ...
1.
risk assessment should be performed on an ongoing basis.
2.
compliance should not form part of the risk management process.
3.
risk management is separable from the company’s strategic business processes.
4.
internal audit should be integrated with the risk management process.
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risk assessment should be performed on an ongoing basis.
Question 4
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Which one of the following statements relates to the concept of corporate
governance?
1.
It is universal and prescriptive by nature and applicable to only a few companies.
2.
It enhances one individual’s dominance of business decisions and objectives.
3.
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