COSO ERM Model

Question 1

Define “event identification” (according to the COSO ERM model).

Answer 1

Identifying events that might affect—either positively or negatively—the organization’s ability to meet its objectives

Question 2

Define “risk response” (according to the COSE ERM model).

Answer 2

Management’s response to risk. Depends on management’s risk appetite. May include risk avoidance, reduction, sharing, or acceptance

Question 3

Define “strategic objectives” (according to the COSO ERM model)

Answer 3

One of four organizational objectives. High-level goals that support the organization’s overall mission

Question 4

Define “reporting objectives” (according to the COSO ERM model)

Answer 4

One of four organizational objectives. Information system goals related to the accuracy, completeness, timeliness, and reliability of internal and external reporting.

Question 5

Define “compliance objectives” (according to the COSO ERM model)

Answer 5

One of four organizational objectives. These are designed to ensure that the organization meets legal and regulatory requirements

Question 6

Define “objective setting” (according to the COSO ERM model)

Answer 6

A company must establish objectives at four levels (strategic, operational, reporting, and compliance)

Question 7

Define “operations objectives” (according to the COSO ERM model).

Answer 7

One of four organizational objectives. Goals concerned with day-to-day operating activities (i.e. sales activities, warehousing, manufacturing, etc.)