1. What are the key categories of risk?

2. What are the four key approaches to managing risk? Give an example of each and a practical application of each.

3. One of the difficulties in introducing ERM is achieving a risk aware culture. Explain what this is and what the difficulties are in achieving this change?

4. You have been elected to a newly formed company that has developed a new on-Line market for the public to exchange goods and services. It receives a commission from the sales of goods and charges and a small fee for placing the advertisement on the WEB-site. It operates from a small office and has 10 employees most of whom manage and control the movement of goods, provide customer support and confirm advertisements and collection of cash which is charged to a PayPal system. You have been appointed to the Board as the result of your experience in both managing an online business and your expertise in risk management. You have been asked by other members of the Board to identify the potential risks to the business - financial and non- financial. To date the Board has focused on establishing the business and not really pursue any risk management activities. Prepare a report and a brief presentation to the Board.