A process in which business units identify their own risks and rate the controls over them. It is forward-looking and relies on judgement.
Where you will meet it
Risk and control self-assessment comes up in 4 learning outcome notes across the FRM syllabus.
A few of them:
Operational Risk FRM Part I · Valuation and risk models
“Risk and Control Self-Assessment (RCSA) has business unit managers identify and score their own risks and controls, typically by likelihood and impact.”
Risk Identification FRM Part II · Operational risk and resilience
“They include risk and control self-assessment (RCSA), process mapping, internal loss and near-miss collection, key risk indicators (KRIs), audit findings and new-product reviews.”
Operational Risk FRM Part I · Valuation and risk models
“Better schemes tie the charge to the unit's own loss experience and to scorecards built from RCSA results and KRIs, so that stronger controls lower the allocation.”
Risk Measurement and Assessment FRM Part II · Operational risk and resilience
“A risk and control self-assessment (RCSA) has the business identify its risks and controls and rate the inherent risk before controls.”
GARP does not endorse, promote, review, or warrant the accuracy of the products or services offered by Charta Learning, nor does it endorse any pass rates claimed by Charta Learning. Further, GARP is not responsible for any fees or costs paid by the user to Charta Learning. FRM® and GARP® are registered trademarks owned by the Global Association of Risk Professionals, Inc. The questions, explanations and study notes are written for this product and are not GARP curriculum material.