AFM479 Study Guide - Midterm Guide: Project Risk Management, Systematic Risk, Operational Risk

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM479
• Professor: John D'Amato

Document Summary

Managing strategic risk: company strategy needs to be checked, but it can only be managed effectively if the management structure for monitoring and tackling strategic risks exists in the first place. Major steps of project risk management: risk assessment, risk identification, risk analysis. Quantitative analysis: risk management plan, risk response, risk control, risk monitoring, monitoring of the risk management plan, controlling effectiveness, communication. Major causes for problems in risk management: inadequate controls. Risk appetite: is not static and is dependent on a firm"s risk culture. Enterprise risk management: a systematic approach to managing risk, w hich means that risk factors and mitigation programs must be considered on a business -wide basis, internally and externally. Erm framework: four objectives and eight components for management processes to achieve each objective. Eight components: internal environment (mission, firm culture, corporate governance policy, objective setting, event identification, risk assessment, risk response, control activities, information and communication, monitoring.