BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not a potential value driver for implementing ERM?
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Financial results will improve in the short run.
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There will be fewer surprises from year to year.
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There will be better information available to make risk decisions.
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An organization’s risk appetite can be aligned with strategic planning.
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Explanation:
Detailed explanation-1: -The ERM process includes five specific elements – strategy/objective setting, risk identification, risk assessment, risk response, and communication/monitoring.
Detailed explanation-2: -Which of the following is not true concerning Enterprise Risk Management (ERM)? ERM only involves upper management and the board of directors.
Detailed explanation-3: -The current framework includes eight components layered with four objectives – Strategic | Operations | Reporting | Compliance: Internal Environment – refers to the tone of the organization, its risk appetite and elements such as board oversight.
There is 1 question to complete.