Chapter 5

Question 1

Enterprise-wide risk management (ERM) considers the global array of risks that affect an organization, which can be represented by a three-dimensional depiction of attributes. These attributes are

Answer 1

resources, events, and impacts

Question 2

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) published what is referred to as COSO II. COSO II, a risk management framework,

Answer 2

Focuses on threats to the organization and application of controls.

Question 3

At a minimum, in the enterprise-wide risk management (ERM) process, an organization should identify ______ of its top risks for consideration of their likelihood, to target them for treatment and monitoring

Answer 3

5

Question 4

ERM also considers the risk that the organization will outperform its strategic goals, which is referred to as

Answer 4

Upside Risk

Question 5

Sub-frameworks exist that are not considered to be enterprise-wide risk management (ERM) frameworks, but that provide specific industries and sectors with guidance. One example is

Answer 5

Space Systems Risk Management

Question 6

The chief risk officer helps the enterprise create a risk culture in which individual department heads and project managers are identified as

Answer 6

Risk Owners

Question 7

A strong ERM program encourages the buy-in of an organization’s stakeholders by establishing management strategies that

Answer 7

protect the organization’s reputation and assets.

Question 8

Enterprise-wide risk management (ERM) will generally result in

Answer 8

management by consensus

Question 9

The first step in integrating enterprise-wide risk management (ERM) with strategic planning is to

Answer 9

Consider goals for ERM as part of the organization’s business model.

Question 10

ISO 31000:2009 is not compulsary unless

Answer 10

contractually required by a client or customer

Question 11

COSO II provides an effective mechanism for initiating dialogue with an organization’s board and senior executives about establishing

Answer 11

enterprise-wide risk management (ERM) goals as part of the strategic management process

Question 12

The Federation of European Risk Management Associations (FERMA) consists of

Answer 12

national risk management associations, individual risk managers from Central European countries, and representatives from health organizations, educational sectors and public sectors.

Question 13

An organization that has adopted an ERM approach monitors risks, threats, and opportunities that arise from a variety of sources. The two important benefits provided by this approach verses traditional risk management are

Answer 13

improved risk communication and enhanced decision making