BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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High civil penalties
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Criminal penalties to the enterprise, senior management, and/or individual employees
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Technical interruptions in the plant’s operation
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Severe reputational impact to the enterprise
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Detailed explanation-1: -Traditionally, ERM has played a strong supporting role at the board level. Framework supplies important considerations for boards in defining & addressing their risk oversight responsibilities.
Detailed explanation-2: -What Are the 8 Components of ERM? The COSO framework for ERM identifies eight components: internal environment, objective setting, event identification, risk assessment, risk response, control activities, information & communication, and monitoring. These eight core components drive a company’s ERM practices.
Detailed explanation-3: -Risk management is central to good corporate governance because it closes the loop between strategic initiatives and day-to-day operational performances. It also provides the foundation for dynamic goal setting, balanced scorecards, and guided analysis.
Detailed explanation-4: -In the context of third party risk management (TPRM), vendor due diligence is the process by which an organization examines a current or potential third party vendor’s risk to its business operations. It’s often a regulatory requirement in guidelines such as those issued by the OCC and the FFIEC.