An Organization Does Not Have a Formal Risk Management Function

question 214

Multiple Choice

An organization does not have a formal risk management function. According to the Standards, which of the following are conditions where the internal audit activity (IAA) may provide risk management consulting? 1. There is a clear strategy and timeline to migrate risk management responsibility back to management. 2. The IAA has the final approval on any risk management decisions. 3. The IAA does not give objective assurance on any part of the risk management framework for which it is responsible. 4. The nature of services provided to the organization is documented in the internal audit charter.

• A) 1, 2, and 3 only
• B) 1, 2, and 4 only
• C) 1, 3, and 4 only
• D) 2, 3, and 4 only

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Definitions:

Positive Relationship

A connection between people that is characterized by mutual respect, trust, support, and positive communication.

Blunt

Being direct and straightforward in communication without the use of softening words or phrases.

Indirect Claim Message Goal

The aim to address a complaint or request in a way that minimizes potential conflict or offense, often by explaining the situation before presenting the actual claim.

Deserve Compensation

The notion that an individual should receive something, typically money or benefits, as a reward for their efforts or as restitution.