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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Risk Management

Sagar Foods Ltd. has a risk management policy listing mitigation plans, but the board has never reviewed whether the planned actions were carried out. Which governance gap does this chiefly show?

The gap is the absence of monitoring and review of risk treatment. Mitigation plans exist on paper, but the board has not checked whether they were implemented or effective. Good risk governance requires periodic review of treatment actions and reporting on their status.

  1. AAbsence of monitoring and review of risk treatment implementationCorrect
  2. BExcess risk appetite
  3. CIncorrect risk identification
  4. DOver-reliance on risk avoidance

Explanation

Having mitigation plans is not enough; the board and risk committee must monitor whether actions are implemented and effective. The facts say nothing about identification errors or appetite, so the gap is in monitoring and review.

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