Chapter 5. Risk Mitigation Practice Question Set covers the following learning objectives:
Explain and compare different ways firms address their operational risk exposures.
Compare different types of internal controls and provide examples of each type of internal control.
Describe control automation, internal control design, and control testing, including risks and challenges that arise in these processes and ways to make them more effective.
Describe methods to improve the quality of an operational process and reduce the potential for human error.
Explain how operational risk can arise with new products, new business initiatives, or mergers and acquisitions, and describe ways to mitigate these risks.
Identify and describe approaches firms should use to mitigate the impact of operational risk events.
Describe methods for the transfer of operational risks and the management of reputational risk, and assess their effectiveness in different situations.