Enterprise Risk Management Quiz

What does ERM stand for?

• Environmental Risk Management

• Economic Risk Management

• Enterprise Risk Management

• Effective Risk Management

Who is responsible for appointing a Chief Risk Officer (CRO) in a corporation?

• Legal Department

• Back Office

• Shareholders

• Board of Directors

What is the purpose of having an independent risk management function in a corporation?

• To limit the role of the CRO

• To increase risk exposure

• To reduce agency costs of debt

• To avoid risk assessment

What is the role of the Legal Department in the risk management process?

• To evaluate transactions

• To manage liability associated with risks

• To enforce policy compliance

• To analyze aggregate information

Why is integration across IT systems challenging for Enterprise Risk Management?

• It interferes with traditional business operations

• It simplifies the risk management process

• It reduces the need for data capture systems

• It limits the use of research systems

What is the risk appetite?

• An expected level of variation relative to the achievement of objectives

• An unexpected level of variation relative to the achievement of objectives

• A level of variation relative to the achievement of objectives

• None of the above

What is the risk treatment including?

• The risk assessment

• Both the assessment of the residual and inherent risk

• None of the above

• The risk monitoring

The risk sharing means:

• None of the above

• An acceptance of the risk

• An avoidance of the risk

• A risk reduction

The risk assessment includes:

• The assessment of the residual risk

• None of the above

• Both the assessment of the residual and inherent risk

• The assessment of the inherent risk

The risk tolerance is:

• An expected level of variation relative to the achievement of objectives

• A level of variation relative to the achievement of objectives

• None of the above

• An unexpected level of variation relative to the achievement of objectives