Risk Management (100% correct answers)

Which one of the following is true regarding enterprise-wide risk management (ERM)? Select one: A. ERM is an approach to managing all of an organization's key risks and opportunities. B. ERM is an approach to risk management that focuses primarily on loss exposures associated with pure risk. C. In practice, implementation of ERM occurs at the departmental or business unit level. D. Implementation of ERM is fairly consistent among organizations, regardless of their size, nature, or complexity. correct answers A. ERM is an approach to managing all of an organization's key risks and opportunities. Traditionally, the risk management professional's role has been associated with loss exposures related to Select one: A. Speculative risk. B. Operational risk. C. Business risk. D. Pure risk. correct answers D. Pure risk. Wanlett Enterprises has a risk manager who is charged with making sure the organization has the necessary property and liability insurance policies in place to respond to hazard risks that were identified over twenty years ago. Wanlett still creates and manufactures the same products it did decades ago. Which one of the following is true given this scenario? Select one: A. Wanlett's risk management efforts are intended to maximize the organization's value. B. Wanlett is mostly concerned with pure, as opposed to speculative risks. C. Wanlett is managing all its loss exposures that arise from speculative risk. D. Wanlett shows it wants the risk management process to occur at the enterprise level. correct answers B. Wanlett is mostly concerned with pure, as opposed to speculative risks. Which one of the following is the goal of enterprise-wide risk management (ERM)? Select one: A. Decentralize control of business decisions B. Reduce risk management costs C. Maximize the organization's value D. Coordinate loss reduction efforts correct answers C. Maximize the organization's value Which one of the following lists the steps in the risk management process in the correct order? Select one: A. Identify loss exposures, analyze loss exposures, select techniques, examine techniques, implement techniques, monitor, and revise the program B. Identify loss exposures, analyze loss exposures, examine techniques, select techniques, implement techniques, monitor, and revise the program C. Select techniques, examine techniques, identify loss exposures, analyze loss exposures, implement techniques, monitor, and revise the program