CHAPTER 3&4 - RM

It is a newer concept in risk management that takes a

holistic view of all of the possible risks an organization faces.

ERM considers speculative risks only.

• TRUE

• FALSE

ERM does not replace traditional risk management (TRM), it expands upon TRM’s practices

and techniques to consider more risks and offer additional solutions to finance or manage

them.

• TRUE

• FALSE

[ENUMERATE IN ORDER]

Value is...

[ENUMERATE IN ORDER]

Enterprise Risk Management Framework

Functions and operatives with managers and administrators and launching and preserving

effective risk management and their fields of accountability

They must be attentive and responsive of and harmonizing with the business risk appetite

The one in charge for the design of an organization's risk management framework

Performs an essential task in observing and scrutinizing Enterprise Risk Management but they

do NOT have core responsibility for its application and/or preservation.

The internal audit activity’s plan of engagement should be based on a risk assessment

undertaken at least annually.

• 2010.A1

• 2120.A1

• 2210.A1