Question

- For a well-designed risk management program, the risk manager must take into account the key elements promoting a successful risk management program. List and elaborate the essential key elements. Note: Non-exhaustive, you may include other key elements of ERM (i.e. the creation of internal control system) with relevant explanations. -(Elaborate 5 key elements).

30 Marks (Risk management)

Answer 1

There are 10 keys helping to assess the risks involved in a project :

1. Appetite: The amount of risk involved

2. Aggregation: This is calculated on how much we are succeeding in following the strategy to avert the risk.

3. Assessment: How much risk is residual after calculating the major risk.

4. Analytics: How we can model our risk that would have a material impact in out business.

5. Application: The tools required to put in the actual work of risk aversion

6. Architecture: How to monitor every risk at steps and drafting the whole process.

7. Assurance: The policies, processes & controls required to actually carry out the plan of action.

8. Accountability: How to reinforce ownership of risk and control within the enterprise.

9. Action: How can it be ensured that the internal stakeholders work for the best interests of the organization.

10. Achivement: The desired outcome control.