B1M2: ERM Management

Question 1

What is the underlying premise of Enterprise Risk Management?

Answer 1

That every entity exists to provide value to stakeholders and that all entities face risk in the pursuit of value

Question 2

What are the 4 components of Value for ERM?

Answer 2

Creation, preservation, erosion, realization.

Question 3

What are the 5 components of ERM?

Answer 3

Governance and culture strategy
Objective setting
Performance
Review and revision
Information, communication and reporting (Ongoing info-gathering and feedback)

Question 4

What are the 5 principals of Governance and culture?

Answer 4

DOVES

Desired culture
board Oversight
commitment to core Values
Employees are capable
operating Structure

Question 5

What are 4 principals of strategy and Ojective setting?

Answer 5

SOAR

evaluate alternative strategies
formulate business objectives
analyze business context
define risk appetite

Question 6

what are the 5 components of Performance?

Answer 6

VAPIR

develops portfolio View
Assess severity of risk
Prioritize the risk
Identifies risk
Implement risk response

Question 7

what are the 3 principals of review and revision?

Answer 7

SIR

assesses Substantial change
pursues Improvement in ERM
Reviews risk and performance

Question 8

what are the 3 principals of Info, communication and reporting? (ongoing)

Answer 8

TIP

Leverages info and Technology
communicates risk Info
reports on risk, culture and performance