RSK2601 EXAM PACK.

TABLE OF CONTENTS MAY/JUNE 2016………………………..…………….3 OCT/NOV 2016…………………………..……………9 OCT/NOV 2015……………………………………….13 MAY/JUNE 2015……………………………………..18 MAY/JUNE 2014……………………………………..23 RSK2601 EXAM PACK. RSK2601 MAY/JUNE 2016 SECTION A:MULTIPLE CHOICE QUESTIONS (40MARKS) 1-3 2-1 3-2 4-4 5-2 6-4 7-4 8-2 9-4 10-1 11-1 12-2 13-2 14-1 15-4 16-3 17-3 18-3 19-3 20-2 21-4 22-3 23-3 24-2 25-3 26-3 27-2 28-3 29-2 30-3 31-3 32-2 33-3 34-3 35-1 36-3 37-4 38-4 39-1 40-3 ENTERPRISE RISK MANAGEMENT SECTION B:ESSAY QUESTIONS ANSWER ALL QUESTIONS IN THE SPACES PROVIDED QUESTION1-INTRODUCTION TO ENTERPRISE RISK MANAGEMENT(14MARKS) Mrs Jacobs has just been appointed as the new CEO of CALL 4U Ltd.She approaches you as the risk manager to gain a better understanding of the implementation of enterprise risk management(ERM)within the company Compile a report addressed to Mrs Jacobs in which you explain the elements of an ERM structure i)Corporate governance(board oversight) -Corporate governance refers to a framework of rules and practices by which a board of directors ensures Accountability ,fairness and transparency in a companys relationship with all its stakeholders(financiers,customers,management,employees,government and the community. -The corporate governance framework consists of the following: .Explicit and implicit contracts between the companys and the stakeholders for the distribution of responsibilities,rights and rewards .Procedures for reconciling the conflicting interests of stake holders in accordance with their duties,priviledges and roles .Procedures for proper supervision ,control and information flows to serve as a system of checks and balances ii)Internal controls -It refers to the process that is effected by a companys board of directors,management and other personnel,designed to provide reasonable assurance regarding the achievement of objectives in the following categories: -Reliability of financial reporting -Compliance with applicable laws and regulations -Effectiveness and efficiency of operations