B1-M2

Question 1

Enterprise Risk Management

Answer 1

the culture, capabilities, and practices integrated with strategy setting and performance that organizations rely on to manage risk in creating, preserving and realizing value

Question 2

5 components of Enterprise Risk Management

Answer 2

1. Governance and Culture
2. Strategy and Objective setting
3. Performance
4. Review and Revision
5. Information, Communication, and Reporting

Question 3

Governance and Culture

Answer 3

entity’s tone at the top, oversight responsibilities for ERM

Question 4

Strategy and Objective setting

Answer 4

Define risk appetite, evaluates alternative strategies, formulates business objectives

Question 5

Performance

Answer 5

risk is prioritized assessed and identified, implement risk responses

Question 6

Review and Revision

Answer 6

assess substantial change, reviews risk and performance

Question 7

Information, Communication, and Reporting

Answer 7

management uses relevant info, org reports on risk culture and performance

Question 8

Inherent Risk

Answer 8

Risk to an entity in the absence of any direct or focused actions by management

Question 9

Actual residual risk

Answer 9

Risk remaining AFTER management has taken action