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Material risk refers to the potential for loss or negative impact on an organization due to events or factors that could significantly affect its financial performance, reputation, or operational viability. This type of risk is considered "material" if it could influence the decisions of stakeholders, such as investors or regulators. Organizations typically assess and manage material risks to ensure long-term sustainability and compliance with regulatory requirements. Examples include market fluctuations, legal liabilities, and operational failures.
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What are the cause of accident in composite risk management?
environment, human, material
What does the term 'compliance risk' mean?
'Compliance risk' means the risk of material financial loss, legal liability, or loss of reputation to a business as a result of its failure to comply with the law.
What is the difference between Inherent Risk and Control Risk?
Inherent Risk is embeded in the Model or the structure of the Company, such as Banks and financial institutions have an inherent risk of Robbery as cash is being handled at high volumes.This cant be controlled due to the basic structure of the business. The Auditor can not change this risk due to its embeded nature. Control Risk on the contrary is the Risk due to Internal Control implemented in order to minimize material misstatements. Management designs the internal control system in order to prevent material misstatement occurence. Auditor again cant change this and has to tune the Detection risk based on the level of these 2 risks.
The risk management model includes risk planning risk identification risk handling and risk monitoring.?
risk planning, risk identification, risk handling, risk monitoring
What is the five step process risk management?
The five steps are: Identify the risk Analyse the risk Evaluate or rank the risk Treat the risk Review the risk
What are the cause of accident in composite risk management?
environment, human, material
What are the factors that cause accidents risk management?
Human, environment,material
What are the factors that cause accident in risk management?
Human, environment,material
What does the term 'compliance risk' mean?
'Compliance risk' means the risk of material financial loss, legal liability, or loss of reputation to a business as a result of its failure to comply with the law.
Insurance proposal form?
An insurance proposal form will be sent to a prospective insured by an insurer to ask questions in relation to a risk concerning matters that they consider to be material (a material fact is a fact which would affect an underwriters decision to accept a risk or not).
Cancelling an insurance ab initio?
failure to disclose material facts that changes insurable risk
What is inherent risk in audit risk?
Inherent risk in audit risk refers to the susceptibility of an account balance or class of transactions to material misstatement, assuming there are no related internal controls in place. It arises from the nature of the business or its environment, such as industry practices, economic conditions, or complex transactions. Auditors assess inherent risk to determine the level of substantive testing needed, as higher inherent risk indicates a greater likelihood of material misstatements. Understanding inherent risk helps auditors tailor their audit approach and focus on areas with higher potential for errors.
What is the difference between Inherent Risk and Control Risk?
Inherent Risk is embeded in the Model or the structure of the Company, such as Banks and financial institutions have an inherent risk of Robbery as cash is being handled at high volumes.This cant be controlled due to the basic structure of the business. The Auditor can not change this risk due to its embeded nature. Control Risk on the contrary is the Risk due to Internal Control implemented in order to minimize material misstatements. Management designs the internal control system in order to prevent material misstatement occurence. Auditor again cant change this and has to tune the Detection risk based on the level of these 2 risks.
A tiny fragment of heated material?
A tiny fragment of heated material is likely an ember. Embers are small, glowing pieces of burning material that result from a fire or combustion process. They can be carried by the wind and pose a fire risk if not properly managed.
What makes an asbestos material friable?
An asbestos material is considered friable when it can be easily crumbled or reduced to powder with hand pressure. This typically occurs when the material is damaged, deteriorated, or disturbed, releasing asbestos fibers into the air where they can be inhaled and pose a health risk.
What does post heat mean?
Post heat refers to the process of applying heat to a material after a particular operation, such as welding, casting, or forming, to relieve residual stresses and improve the material's properties. This process helps to reduce the risk of cracking and distortion in the material.
Are poppers allowed on planes?
No, poppers are not allowed on planes as they are considered a hazardous material and can pose a safety risk during flight.
