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Flashcards in Examples of Risk monitoring processes Deck (5)
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1
Q

Examples of risk monitoring processes

A

Regular review

systems of notification

internal audit functions

employment of compliance monitoring staff

skills assessment and medical examinations to assure competence and fitness to work

Practices and drills

Use of embedded IT ‘intelligent agents’ to monitor risks (eg bad debts, unusual costs of revenue entries

attempts to access restricted files)

Intelligence gathering on occurences elsewhere

Monitoring of the regulatory framework

2
Q

Techniques for dealing with uncertainty

A

Making prudent estimates

Assessing the best and worst possible outcomes

Using sensitivity analysis

3
Q

Sensitivity analysis: Break even output

A

contribution per unit

4
Q

Sensitivity analysis: Margin of safety

A

planned sales

5
Q

Sensitivity analysis: Target profit

A

contribution per unit