A multinational corporation is reviewing its risk management practices. Which strategy aligns most effectively with enterprise-wide value creation?

• Avoiding all risks

• Creating risk for competitive gain

• Ignoring minor operational risks

• Systematically identifying, evaluating, and mitigating risks

A risk manager proposes ignoring low-probability events. Which principle is being violated?

• Risk identification

• Risk assessment integrity

• Risk treatment

• Risk prioritization

Monitoring and review are included in risk management because:

• They increase ambiguity

• They replace identification

• They validate the effectiveness of existing controls over time

• They reduce the need for stakeholder input

Consider a scenario where management conceals risk exposure from shareholders. What step in the process has been fundamentally breached?

• Treatment

• Transparent assessment

• Avoidance

• Reporting

In strategic planning, how should the term 'risk' be conceptualized?

• A profit guarantee

• Variability in potential outcomes

• Market dominance

• Failure prediction

The strategic role of the SEC in enterprise risk management is primarily related to:

• Global health standards

• Financial disclosure and compliance

• Environmental issues

• Educational reforms

In advanced ERM systems, the final step is not to close the cycle but to:

• Continuously monitor and adapt controls

• Create new risks

• Assign blame

• End analysis

What would be considered an ineffective risk treatment approach?

• Sharing the risk

• Accepting the risk

• Ignoring the risk

• Reducing the risk

If an analyst mistakenly includes 'dividend' in a glossary of risk terms, what has occurred?

• Misclassification of financial concepts

• Reclassification of exposure

• Proper terminology use

• Systemic risk labeling

ERM allows organizations to:

• Remove all uncertainty

• Operate without planning

• Make more informed and resilient decisions

• Avoid regulatory compliance