Which of the following do NOT indirect information?

• A.Information about the propriety of cutoff
• B.Reports that show orders that were rejected for credit limitations.
• C.Reports that provide information about any unusual deviations and individual product margins.
• D.The lack of any significant differences between perpetual levels and actual levels of goods.
• E.Explanation:
  Information about the propriety of cutoff is a kind of direct information.
• F.is incorrect. Reports that provide information about any unusual deviations and
  individual product margins (whereby, the price of an item sold is compared to its standard cost)
  provide indirect information that controls over billing and pricing are operating.
• G.is incorrect. Reports that show orders that were rejected for credit limitations provide
  indirect information that credit checking aspects of the system are working as intended.

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The PRIMARY objective of a risk identification process is to:

• A.establish risk response options.
• B.evaluate how risk conditions are managed.
• C.determine threats and vulnerabilities.
• D.estimate anticipated financial impact of risk conditions.

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Which of the following is MOST important for developing effective key risk indicators (KRIs)?

• A.Utilizing data and resources internal to the organization
• B.Engaging sponsorship by senior management
• C.Developing in collaboration with internal audit
• D.Including input from risk and business unit management

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Which of the following methods involves the use of predictive or diagnostic analytical tool for exposing risk factors?

• A.Scenario analysis
• B.Sensitivity analysis
• C.Fault tree analysis
• D.Cause and effect analysis

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Which of the following is NOT true for risk governance?

• A.Risk governance is based on the principles of cooperation, participation, mitigation and sustainability, and is adopted to achieve more effective risk management.
• B.Risk governance requires reporting once a year.
• C.Risk governance seeks to reduce risk exposure and vulnerability by filling gaps in risk policy.
• D.Risk governance is a systemic approach to decision making processes associated to natural and technological risks.
• E.Explanation:
  Risk governance is a continuous life cycle that requires regular reporting and ongoing review, not
  once a year.

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