Risk Management Module 3 (Questions with 100% verified answers)

Enterprise Risk Management correct answers -a process used by a company to identify its risks and develop responses to them that enable it to be reasonably assured of meeting its goals -An Enterprise Risk program combines into a single unified treatment program all major risks faced by the organization. By packaging risks together, an organization can often offset one risk against another. Enterprise Risk Management Framework: correct answers -Risk Identification -Risk Analysis -Risk Assessment -Selection of Risk treatment measures and Controls -Implementation -Monitoring Risk Management Framework correct answers A set of components that provide the foundations and organizational arrangements for designing, implementing, monitoring, review and continually improving risk management throughout the organization Why Enterprise Risk Management? ( ERM) correct answers 1. Risks have become more complicated-Organizations are realizing the importance of managing all risks and their interactions not just familiar risks easier to quantify 2. External Pressures- Company boards and senior management are under greater pressure to take responsibility to manage risks on an enterprise wide scale. This is very apparent now with cyber or technology related risks. Pressure comes from regulators, rating agencies, institutional investors, shareholders and customers 3. Portfolio- There is growing tendency to view risks with a recognition that it must be managed with the total portfolio in mind 4. Quantification- Organizations are attempting more than ever to quantify risks as advances in technology and expertise make this easier to accomplish. ( figure out the cost of risks) Enterprise Risk management Covers the following risks: correct answers 1. Pure risks 2. operational risks 3. Regulatory risks/ compliance risks 4. Reputational Risks 5. Financial Risks 6. Supply chain risks Pure Risk correct answers a risk that presents the chance of loss but no opportunity for gain