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Questions and Answers
Which type of risk management considers financial and strategic risks in addition to hazard and operational risks?
Which type of risk management considers financial and strategic risks in addition to hazard and operational risks?
- Traditional risk management
- Strategic risk management
- Operational risk management
- Enterprise-wide risk management (correct)
What is the main difference between traditional risk management and enterprise-wide risk management regarding risk categories?
What is the main difference between traditional risk management and enterprise-wide risk management regarding risk categories?
- ERM only considers speculative risks
- Traditional risk management is concerned with pure risk
- Traditional risk management focuses on preventing or reducing potential losses
- ERM considers all risks that an organization faces, regardless of their source or potential outcomes (correct)
How is strategic integration different between traditional risk management and enterprise-wide risk management?
How is strategic integration different between traditional risk management and enterprise-wide risk management?
- Traditional risk management is integrated with the entire organization’s strategy
- Traditional risk management considers both pure and speculative risks
- ERM is involved only in the elements of the organization’s strategy that deal with pure risk and hazard risks (correct)
- ERM considers the global array of risks that affect the organization
