CG 5&6

What are the main functions of the board?

• Legal compliance, risk assessment, public relations, and research and development

• Financial reporting, marketing, human resources, and operations

• Strategy formulation, accountability, policy making, and supervising executive activities

• Product development, customer service, sales, and IT management

What is the purpose of risk analysis in an organization?

• To eliminate all risks completely

• To decrease operational costs

• To identify areas of possible risk and develop risk management policies

• To eliminate chaos within the organization

How can boards respond to identified risks?

• Ignore the risks and hope for the best

• Mitigate the risks, transfer the risks, retain the risks, or avoid the risks

• Increase the risks intentionally

• Blame the management for the risks

What is the role of policies in policy making and supervising executives?

• Policies are only applicable to junior employees

• Policies restrict the board's ability to supervise executives

• Policies provide criteria for the board to monitor management's performance

• Policies are unnecessary and should be avoided

What are the levels of risk that can arise in a company?

• Strategic level risks

• Management level risks

• Operational level risks

• All of the above

What is the purpose of transparency in corporate governance?

• To hide information from stakeholders

• To confuse stakeholders with unnecessary details

• To provide shareholders with information on the company's performance and future

• To avoid accountability to stakeholders

What is the process involved in risk analysis in an organization?

• Accepting, embracing, celebrating, and promoting

• Guessing, ignoring, denying, and blaming

• Avoiding, delaying, complicating, and forgetting

• Recognition, assessment, evaluation, management policies, and monitoring

What are the possible risk areas mentioned in the slides?

• Business environment

• Competitive issues

• Compliance matters

• All of the above

In the risk analysis and management process, review of ongoing insurance coverage and claims management is part of;

• Risk recognition

• Risk assessment

• Risk evaluation

• Risk monitoring and reporting

Determining the probability of an event occurring is part of;

• Risk recognition

• Risk assessment

• Risk evaluation

• Determining risk management policy