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Questions and Answers
Which of the following best describes enterprise risk management (ERM) in business?
Which of the following best describes enterprise risk management (ERM) in business?
- A framework for managing risks and seizing opportunities in organizations (correct)
- A risk-based approach to managing an enterprise
- A process for assessing the likelihood and magnitude of risks
- A strategy for proactively addressing risks and opportunities
What does ERM typically involve?
What does ERM typically involve?
- Creating value for stakeholders, including owners, employees, and customers
- Integrating concepts of internal control, the Sarbanes–Oxley Act, data protection, and strategic planning
- Identifying events or circumstances relevant to objectives, assessing them, determining a response strategy, and monitoring the process (correct)
- Addressing the needs of various stakeholders
How does ERM help business enterprises?
How does ERM help business enterprises?
- By protecting and creating value for stakeholders (correct)
- By addressing the needs of various stakeholders
- By assessing the likelihood and magnitude of risks
- By integrating concepts of internal control and strategic planning
What does ERM integrate in its risk-based approach?
What does ERM integrate in its risk-based approach?
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How is ERM evolving to meet stakeholder needs?
How is ERM evolving to meet stakeholder needs?
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