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16 Cards in this Set
- Front
- Back
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5 Components of COSO (CRIME) |
1. Control environment |
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Risk Response (is eaR aim)
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1. Avoidance |
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Event Identification
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1. Events - internal/external occurrences that may impact strategy
2. Influencing Factors - economic, natural, social, tech, ppl 3. Techniques - brainstorming workshops |
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Inherent Risk
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Risk if management takes NO action
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Residual Risk
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Risk AFTER management takes action to mitigate adverse impacts of an event
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Fraud Risk
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1. Incentive/pressure
2. Rationalization 3. Opportunity |
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Internal Environment
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1. Risk Appetite
2. Organizational structure 3. Ethics 4. BoD 5. Authority and Responsibility |
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Avoidance (risk response)
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Avoids or terminates risk (disc ops)
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Reduction (risk response)
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Elect to reduce or mitigate risk (invest in inventory technology or closely monitor inventory)
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Sharing (risk response)
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Reduce risk by transferring (insurance)
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Acceptance (risk response)
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No action in risk response
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Monitoring (criMe)
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1. Ongoing monitoring - controls
2. Separate evaluations - fresh look at controls 3. Reporting deficiencies |
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Code of ethics (internal environment)
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1. Honest & ethical conduct
2. Full, fair, accurate, and timely disclosures in f/s 3. Compliance with laws, rules & regulations |
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Event Identification Techniques
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1. Event Inventories - List of potential events common to industry
2. Internal analysis - Analysis performed by staff 3. Escalation or threshold triggers - comparison of predefined criteria may identify events (var from std) |
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Objectives (ERM)
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1. Strategic - goals, mission, increase s/h value |
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The Business Judgement Rule (Fiduciary Duty)
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Directors must always act in the best interest of the Corporation
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