Reference no: EM132776879
Question - With ABC Co. Ltd. is a production company and is listed here. There are 10000 employers and 1200 workers. In relation to its workers benefits, which include gratuity, the Company is subject to Ind AS 19.
Ind AS 19 is an accounting norm applicable to organisations that are expected in statements of accounts to calculate and report the amount of accrued liability (Present Value of Benefit Obligation) with regard to employee The Organization is responsible for paying gratuity payments to its employees in compliance with the Payment of Gratuity Act, 1972. According to the Act, the gratuity payment is calculated using a formula that is [15/26] x monthly salary (relevant for the calculation of gratuity) x the number of years of service performed at the date of the employee's termination of service. The terms and conditions for the payment of the gratuity benefit are specified in the Act and the corporation is expected to comply with them.Now, you have recently been named as a CRO and are requested to draught a report to be submitted to the Board, which should include:
What is the sort of danger to which the firm is exposed?
What is the effect of risk on the efficiency of the company?
What guidelines are there to minimise the risks?
What preventive steps could be taken during the potential involvement of different professionals, such as engineers, surveyors, valuers, etc., who would be expected to certify according to the statutory
Choose the accurate or near accurate answer in the following Multiple Choice Questions.
QUESTION 1 - In general, cyber risk refers to the risks to which an organisation is exposed because of a situation in which its data or network structures or transactions are interrupted, compromised by intrusive access from
1. Bug in computer
2. Virus
3. External entity
4. None of the above
QUESTION 2 - Automated controls are dependent on a:
A) Manual check
B) Predefined system check
C) Predetermined check
D) None of the above
QUESTION 3 - Financial loss of ' 6 lacs is given risk grading/rating, which is:
1. High
2. Low
3. Medium
4. Border
QUESTION 4 - The following is the Section of the Companies Act, 2013 that instructs that the Audit Committee shall review the risk management procedures implemented by the Management:
(A) 177
(B) 134
(C) 315
(D) None of the above
QUESTION 5 - The following aspect does not indicate the risk maturity of an organization:
1. Business objectives are defined and communicated across the organization.
2. Risk appetite is defined and communicated across the organization.
3. Control environment is strong including tone from the top.
4. None of the above
QUESTION 6 - Risk management in an organization minimizes the impact of risk on the business with the help of the following person but does not give guarantee that organization become risk free:
1. A company secretary
2. An internal auditor
3. An actuary
4. A chief risk officer
QUESTION 7 - Brexit impact scenario has the following associated principal risk:
1. Brand, Reputation and Trust
2. Data Security and Data Privacy
3. Political, Regulatory and Compliance.
4. None of the above
QUESTION 8 - A FICO score of 750 means:
1. 1% of chance of default
2. 2% of chance of default
3. 8% of chance of default
4. 61% of chance of default
QUESTION 9 - In Quantitative Techniques of Credit Risk Management, Beta is a measure of:
1. the volatility
2. an investment's excess return
3. the active return on an investment
4. None of the above
QUESTION 10 - Credit insurance is an insurance policy offered for sale to persons in the market and is a type of:
1. life insurance
2. property and casualty insurance
3. health insurance
4. reinsurance