Cpcu 500 Chapter 5

Front 1

chief risk officer

Back 1

Front 2

difference between traditional risk management and erm

Back 2

traditional considers only risk that affect organization. erm expands risk focus to include financial and strategic risks

Front 3

4. areas traditional risk management differs from erm

Back 3

- risk categories
- strategic integration
- performance metrics
- organizational structure

Front 4

2 categories of risk associated with traditional risk management

Back 4

1. hazard risks
2. operational risks

Front 5

hazard risks

Back 5

risks that include damage to property

Front 6

operational risks

Back 6

risks that arise out of service or processing activities

Front 7

2 categories of risks associated with erm

Back 7

1. financial risks
2. strategic risks

Front 8

upside risk

Back 8

risk that organization will outperform strategic goals

Front 9

business model

Back 9

Front 10

consideration included in organization erm goal

Back 10

1. why organization develop program
2. intended scope of program
3. How program assist organization to meet goals
4. organization risk appetite

Front 11

to integrate erm

Back 11

1. develop erm goal
2. identify risks
3. analyze critical risks
4. treat critical risks. prioritize
5. monitor critical risks

Front 12

treatment for risks of erm

Back 12

accept
mitigate
optimize

Front 13

2 important benefits of the erm approach

Back 13

enhanced decision making
improved risk communication

Front 14

iso 31000:2009

Back 14

provides international standard for risk management. focuses on commonly accepted principles.

Front 15

4 frameworks for risk management implementation

Back 15

bs 31190
coso ii
as/nzs 4360
ferma

Front 16

difference between basel ii and solvency ii

Back 16

basel issued by basel in 2004 and establishes risk and capital management rules that bank holds capital reserves
solvency issued by European commission in 2007 and consists of regulatory requirements of insurance firms

Front 17

bs 31100

Back 17

British standards institution as a code of practice for rm. code establishes principle and terminology for rm and provides recommendations

Front 18

primary goals for bs 31100

Back 18

- ensuring organization achieves goals
- ensuring risks are managed in a specific area
- overseeing rm in an org
- providing reasonable assurance of org rm

Front 19

coso ii

Back 19

defines erm as a process driven from organizations board that establish an organization strategy to manage risk within appetite

Front 20

as/nz 4360

Back 20

genetic framework fire managing risks

Front 21

ferma

Back 21

federation of European rm association. adopted the risk management standard published in uk in ,2002. allows org to report compliance with best practices

Front 22

elements of ferma

Back 22

- consistent terminology
- process rm can be executed
- organized rn structure
- rm goals