Which of the following are the Committee of Sponsoring Organisations (COSO) key principles of enterprise risk management?
Select ALL that apply.

• A.The creation of a risk aware culture
• B.A comprehensive and holistic approach to risk management
• C.Consideration of risk management in the context of business strategy
• D.Risk management is the responsibility of the risk committee
• E.Consideration of the main risk only which is financial risk

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As part of risk assessment exercise for a low-cost airline you are requested to match the risks listed below with the most approriate method of minimising or dealing with each risk.

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P Ltd, a service company, is seeking to recruit engineers to work in its maintenance division. Which TWO of the following suggestions will be most likely to help prevent fraud when recruiting the engineers?

• A.Checking that the engineers do not belong to a union.
• B.Having a defined fraud policy statement that includes recruitment issues.
• C.Checking that the engineers have previous experience in a similar business.
• D.Taking up references from previous employers.
• E.Checking that the engineers have a professional engineering qualification.

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Which of the following statements concerning the use of balanced scorecards to measure divisional performance is correct?

• A.The input for balanced scorecard reports comes from many sources so it is not possible to misrepresent performance.
• B.Dysfunctional behaviour is impossible because divisional managers are evaluated on so many different decisions.
• C.Dysfunctional behaviour is more difficult than under traditional reporting because a wide range of factors will be measured and reported.
• D.Contradictory and inconsistent targets prevent balanced scorecards being a useful tool for performance evaluation.

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A hospital is part of a government provided health service which is free to patients. The management of the hospital is concerned with the need to minimise the risks to which the hospital is exposed from patient litigation.
In this context, which TWO of the following are appropriate steps to manage this risk?

• A.The management refuses to allow the hospital to participate in the Major Accident Plan for the city in which it is located. It believes the Plan could expose the hospital to excessive risk.
• B.Ensure that proper documentation is in place for all patients showing such details as symptoms, treatments, and test results.
• C.Ensuring that a policy is in place to transfer or discharge critically ill patients so as to minimise fatalities in the hospital.
• D.Allocating a risk score to patients depending on age, general heath and similar consideration and refusing to admit patients whose risk score exceeds a certain threshold.
• E.Ensuring that patients undergoing procedures sign documentation to confirm that the risks have been explained to them and that they understand.

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