QUESTION $1(20$ Marks$)$

Column A Column B

$1\mathrm{.}1$

Risk Exposure

A$.$

The systematic process of evaluating the

potential impact and likelihood of identified risks.

$1\mathrm{.}2$

Detective Controls

B$.$

Occurs as a result of activities and actions performed to manage the business of the organization effectively.

$1\mathrm{.}3$

Risk Retention

C$.$

The disclosure of potential loss or harm that

exists in the absence of any specific controls or

mitigating actions.

$1\mathrm{.}4$

Risk Assessment

D$.$

This occurs when risk cannot be transferred, the risk will have to be reserved in the business organization resulting in it being funded or unfunded

$1\mathrm{.}5$

Internal Drivers

E$.$

An organized cycle of processes that gives the management assurance every risk in the business is managed effectively.

$1\mathrm{.}6$

Risk Appetite

F$.$

Refers to control measures that ensure the sustainability of the organization or business area once a risk event has occurred.

$1\mathrm{.}7$

Key Risk Indicators

G$.$

Refers to the financial amount that the organization is prepared to accept and tolerate as a financial loss in a given period.

$1\mathrm{.}8$

Contingency Controls

H$.$

These are gauges that provide an early warning of a change in risk exposure and highlight control weaknesses or potential failures.

$1\mathrm{.}9$

Inherent Risk

I.

$1\mathrm{.}10$

Risk Management Process

The uncertainty that surrounds the agreed$-$upon future payment

J$.$

Refers to control measures that ensure that a loss event is identified as soon as it occurs, to control the effect on an organization, and to put preventive controls in place to prevent re$-$ occurrence.