Operational risk

QUESTION 2 Question 2 (a) (10 Marks) Explain the concepts of risk appetite and risk tolerance with examples. Answer Risk appetite and tolerance are commonly set-up by SPEND Ltd board and executive management, and they connected with the SPEND company’s strategy. Cited by Blunden and Thirlwell (2010:62) that risk appetite is the “amount and type of risk that an organisation is willing to take to achieve its strategic objectives [over a specified time horizon at a given level of confidence])”.…

Operational level is one of the three warfighting levels, in between of Strategic and Tactical. This level categorise echelons of command and operations activities. Ac-cording to AJP-5 operational level is described as ‘The level at which campaigns and major operations are planned, conducted and sustained to accomplish strategic objectives within theatres or areas of operations’ (AJP-5, 2013 p. 1-13). With refer-ence to that we can state that operational level is most effective and important in…

explains financial risk management as a process to deal with the uncertainties resulting from financial markets. It involves assessing the financial risks facing an organization and developing management strategies consistent with internal priorities and policies. Addressing financial risks proactively may provide an organization with a competitive advantage. It also ensures that management, operational staff, stakeholders, and the board of directors are in agreement on key issues of risk.…

3.4 Risks Every system comes with numerous risks and HVPS is not excluded. HVPS faces risks such as liquidity, legal, operational and credit. To minimize liquidity risk, HVPS provide functions such as account inquiry, balance warning and business queuing which helps to improve liquidity management. HVPS have taken measures such as business limitation, account balance control and debiting control to strengthen the management of credit risk. Whereas to prevent legal risk, People’s Bank of China…

decision making and maintenance of security operations within an organization (Moeti & Kalema, 2014). These metrics help determine if the security components meet their objectives and also avoid doing what they weren’t intended to do. Thus, security and risk metrics play a very important role in assessing the actual state of the system security (Moeti & Kalema, 2014). 4.1 Baseline Metric Framework Meaningful metrics are required to uniquely measure results specific to a security control and…

Introduction In business studies, risk management refers to the projection and assessment of financial threats plus the identification of procedures to eliminate or eradicate their impact on an organization. In this evolving world, taking risks is mandatory for the growth and development of any business. However, the risks taken might have impacts on the future of the business. The impacts can either be positive or negative. Regardless of the nature of impact, it is the role of the organization…

CARVER plus Shock method breaks the food system into its most basic parts, identifying those that are at high risk for an attack and thereby establishing countermeasures to protect these parts from an attack. There are seven factors that the FDA used in conducting the vulnerability assessment and appropriate scale for scoring. These factors include:…

A/TYPES OF RISKS LIQUIDITY RISK: Liquidity risk for banks mainly manifests on account of the following: Market liquidity risk: The risk that a bank cannot easily offset or eliminate a position at the prevailing market price because of inadequate market depth or market disruption. Though the importance of liquidity risk is well recognized, it eludes a comprehensive definition. The term liquidity is used across the mar-ket for different purposes, which means that Liquidity Risk itself is defined…

Risk management primarily refers to the risk of life that an organization must account and conduct procedures for, implying that the risk is already present and not created by the organization’s decisions which grants a protective coating for the consequences of the risk to be hidden. Risks can be managed in one of three categories: preventable risks, strategy risks, and external risks; which are categorized based on the level of controllability an organization can take accountability for.…

The second concern is the RMF and how protecting the network makes it difficult to introduce a cyber environment simulation. Risk Management Framework is the unified information security framework for the entire federal government with the goal to improve information security and strengthen risk management processes (Department of Defense [DoD], 2014). It protects networks and systems from outside vulnerabilities through implementation and constant assessment of security controls. Through the…