Page 36 - RMAI Bulletin July 2024

RMAI BULLETIN JULY 2024

Glossary

Authentication: Inherent Risk:
The verification of the identity of an individual, system, Risk that is inherent to a process, taking into
machine, or any other unique entity consideration the likelihood and impact of a risk

Authorization: Key Control:
The process of allowing access to specific areas of a A primary control that is essential for a business
system based on the role and needs of the user process; typically takes place during the process it
applies to
Committee Charter:
A document that defines the purposes and Key Indicators:
responsibilities of the oversight committee Measurements that are important for organizations to
monitor for potential issues; examples include key
Compliance Risk Profile: performance indicators (KPIs) and key risk indicators
The current and prospective risk to earnings or capital (KRIs)
arising from violations of or nonconformance with
laws, rules, regulations, prescribed practices, internal Key Performance Indicator (KPI):
policies and procedures, or ethical standards
A measurement with a defined set of goals and
tolerances that gauges the performance of an
Control Assessment: important business activity
A high-level review and analysis of controls relating to
a process; should encompass both current and missing Key Risk Indicator (KRI):
controls
A proactive measurement for future and emerging
Controls: risks that indicates the possibility of an event that
Methods that preserve the integrity of important adversely affects business activities
information, meet operational or financial targets,
and/or communicate management policies (See also: Mitigation Actions:
Key Control, Secondary Control, Tertiary Control) The necessary steps, or action items, to reduce the
likelihood and/or impact of a potential risk
ERM Policy Statement:
Defines an organization’s approach to and method of Operation Risk Profile:
enterprise risk management 1) The risk arising from the execution of an
organization’s business processes;
Governance: 2) The risk of loss resulting from failed or inadequate
Processes and structures implemented to internal processes, systems, people, or other
communicate, manage, and monitor organizational entities
activities
Price Risk Profile:
Impact: The risk to earning or capital arising from adverse
The influence and effect of a risk changes in portfolio values

34