Risk-Based Approach – NBC Institute

CSME – Nov 2023 – L2 – Q3 – Risk Management and Corporate Strategy

Clarify key concepts in risk management for an investor considering a new business venture.

Question

Professor Akinlabi has been teaching physics at a frontline public university in Nigeria for 30 years. He made quite some money from research grants and has over the years saved about 75 million naira, which he has been keeping in a fixed deposit facility. He complained to his friend, Dr. Albert, who is a professional accountant and expert in risk management, about the low interest rate on fixed deposits and how the high inflation rate in the country is fast eroding the real value of his savings. He is thinking of investing his savings in a poultry farm, but he is quite averse to risks.

Having tried to get some information on the diverse dimensions and dynamics of risks involved in business, he asked Dr. Albert to offer some clarifications. As Dr. Albert, you are required to offer clarifications on the following:

a. Exposure to risk and the nature of qualitative risks. (5 Marks)

b. Residual risk. (3 Marks)

c. The dynamic nature of risk assessment. (7 Marks)

d. Risk-based approach to business. (5 Marks)

Answer

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Tags: Dynamic risk assessment, Qualitative risks, Residual Risk, Risk Exposure, Risk-Based Approach
Level: Level 2

Topic: Risk Management and Corporate Strategy

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

Question

c) The growth of globalization has created more opportunities for free movement of capital/funds, which has resulted in a global canker called “money laundering.” There have been global efforts from governments and international institutions to combat the menace.

Required:
i) Describe in simple terms the concept of money laundering. (2 marks)
ii) Identify THREE risk-based approaches companies can adopt to combat the risk of money laundering. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Compliance, Financial Regulations, Money laundering, Risk-Based Approach
Level: Level 3

Topic: Emerging issues in finance and financial management, Regulatory framework and processes
Series: MAY 2016

AAA – Dec 2023 – L3 – Q5B – Audit Approach

Discuss the audit strategy BLA should adopt for a small company and an investment company.

Question

Brotherlink & Associates (BLA) has been appointed as Auditors of Kontiba Ltd and Bambi
Ltd. Kontiba Ltd is a small company and Bambi Ltd is an investment company whose assets
and liabilities are substantial in relation to its transactions.
Required:
Discuss the audit strategy/approach BLA should adopt in auditing both companies.
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit strategy, Risk-Based Approach, Substantive Testing
Level: Level 3

Topic: The audit approach
Series: DEC 2023

CSME – Nov 2023 – L2 – Q3 – Risk Management and Corporate Strategy

Clarify key concepts in risk management for an investor considering a new business venture.

Question

a. Exposure to risk and the nature of qualitative risks. (5 Marks)

b. Residual risk. (3 Marks)

c. The dynamic nature of risk assessment. (7 Marks)

d. Risk-based approach to business. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dynamic risk assessment, Qualitative risks, Residual Risk, Risk Exposure, Risk-Based Approach
Level: Level 2

Topic: Risk Management and Corporate Strategy

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

Question

Required:
i) Describe in simple terms the concept of money laundering. (2 marks)
ii) Identify THREE risk-based approaches companies can adopt to combat the risk of money laundering. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Compliance, Financial Regulations, Money laundering, Risk-Based Approach
Level: Level 3

Topic: Emerging issues in finance and financial management, Regulatory framework and processes
Series: MAY 2016

AAA – Dec 2023 – L3 – Q5B – Audit Approach

Discuss the audit strategy BLA should adopt for a small company and an investment company.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit strategy, Risk-Based Approach, Substantive Testing
Level: Level 3

Topic: The audit approach
Series: DEC 2023

Question Tag: Risk-Based Approach

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CSME – Nov 2023 – L2 – Q3 – Risk Management and Corporate Strategy

Clarify key concepts in risk management for an investor considering a new business venture.

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

AAA – Dec 2023 – L3 – Q5B – Audit Approach

Discuss the audit strategy BLA should adopt for a small company and an investment company.

CSME – Nov 2023 – L2 – Q3 – Risk Management and Corporate Strategy

Clarify key concepts in risk management for an investor considering a new business venture.

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

AAA – Dec 2023 – L3 – Q5B – Audit Approach

Discuss the audit strategy BLA should adopt for a small company and an investment company.

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CSME – Nov 2023 – L2 – Q3 – Risk Management and Corporate Strategy

Clarify key concepts in risk management for an investor considering a new business venture.

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AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

You're reporting an error for "AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes"

AAA – Dec 2023 – L3 – Q5B – Audit Approach

Discuss the audit strategy BLA should adopt for a small company and an investment company.

You're reporting an error for "AAA – Dec 2023 – L3 – Q5B – Audit Approach"

CSME – Nov 2023 – L2 – Q3 – Risk Management and Corporate Strategy

Clarify key concepts in risk management for an investor considering a new business venture.

You're reporting an error for "CSME – Nov 2023 – L2 – Q3 – Risk Management and Corporate Strategy"

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

You're reporting an error for "AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes"

AAA – Dec 2023 – L3 – Q5B – Audit Approach

Discuss the audit strategy BLA should adopt for a small company and an investment company.

You're reporting an error for "AAA – Dec 2023 – L3 – Q5B – Audit Approach"

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