What Do You Know About Risk Justification? Trivia Quiz

Explanation
The broad consideration in WV's risk classification is both the likelihood and impact of the risk. This means that WV takes into account how likely the risk is to occur and what the potential impact or consequences of that risk would be. By considering both factors, WV can assess and prioritize risks effectively, taking into account the likelihood of occurrence as well as the potential severity of the impact.

Explanation
The correct answer is "d) All of the above". This means that WV has identified all major risk types, including critical, minor, and important risks. This suggests that WV has a comprehensive understanding of the different levels of risk and is prepared to address them accordingly.

Explanation
If an issue is classified as Critical, the respective impact level to the organization is considerable. This means that the issue has a significant impact on the organization and can cause severe disruptions to its operations, resulting in financial loss, damage to reputation, and potential legal or regulatory consequences. The organization will need to allocate significant resources and take immediate action to address and mitigate the impact of the critical issue.

Explanation
The level of priority for an Important Issue is considered to be medium. This means that while the issue is significant, it may not require immediate attention or action. It falls somewhere in the middle in terms of urgency and importance compared to other issues.

Explanation
If no present controls are in place to mitigate the risk, the most possible risk classification would be "Critical." This means that the risk has the highest level of severity and could have a significant impact on the organization or project if it were to occur. Without any controls to mitigate the risk, it is considered to be of utmost importance and should be addressed immediately to prevent any potential negative consequences.

Explanation
The factors mainly connected to the impact are reputation, cash flows, staff welfare, management tone, assets safeguard, control environment, and Christian commitment. All of these factors can have a significant impact on an organization and its overall success. Reputation affects how the organization is perceived by stakeholders and can influence its ability to attract customers and partners. Cash flows are crucial for the financial stability and growth of the organization. Staff welfare is important for employee satisfaction and productivity. Management tone sets the culture and values of the organization. Assets safeguard ensures the protection of valuable resources. Control environment establishes the framework for internal controls and risk management. Christian commitment refers to the organization's adherence to Christian values and principles.

Explanation
If voluntary staff members are involved in criminal activities, the most relevant class of impact to the organization would be reputation. Criminal activities by staff members, even if they are volunteers, can damage the organization's reputation and public image. This can lead to a loss of trust from stakeholders, customers, and the general public. It can also result in negative media coverage, legal consequences, and potential financial losses. Therefore, reputation is the most relevant class of impact in this scenario.

Explanation
A segregation of duties audit finding at the field directly affects the Control Environment. The Control Environment refers to the overall attitude, awareness, and actions of management and employees regarding the importance of internal controls. A segregation of duties issue indicates a weakness in the control environment as it suggests that there may be inadequate checks and balances in place to prevent fraud or errors. Therefore, it is directly related to the Control Environment.

Explanation
The likelihood is determined based on the consequence mentioned in the audit finding. This means that the probability of the event occurring is assessed based on the severity or impact of the consequence identified in the audit finding. The higher the consequence, the higher the likelihood of it happening. This approach helps in prioritizing and addressing the risks identified in the audit finding.

Explanation
The risk stratification in this scenario would be considered "Important". This is because even though the likelihood of the risk occurring is deemed "Unlikely", the impact level is categorized as "Major". This means that if the risk does happen, it would have a significant impact on the situation. Therefore, it is important to address and mitigate this risk to minimize any potential negative consequences.