CRM Enterprise Risk Management Flashcards
6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRM Enterprise Risk Management flashcards as text
What is the primary goal of Enterprise Risk Management (ERM)?
Answer: Integrate risk management across all business functions
ERM integrates risk management across all business units to provide a holistic view of organizational risk.
Which framework is most commonly associated with ERM implementation?
Answer: COSO ERM Framework
The COSO ERM Framework is the most widely recognized standard for implementing enterprise risk management.
In ERM, what does 'risk appetite' refer to?
Answer: The amount of risk an organization is willing to accept in pursuit of its objectives
Risk appetite defines how much risk an organization is willing to tolerate while pursuing its strategic objectives.
What is a risk register in ERM?
Answer: A document that records identified risks, their likelihood, impact, and mitigation strategies
A risk register is a central repository that documents all identified risks along with their assessment and treatment plans.
Which of the following best describes 'risk tolerance' in ERM?
Answer: The acceptable variation around risk appetite defining boundaries of risk-taking
Risk tolerance is the acceptable variation around risk appetite, defining the boundaries of acceptable risk-taking.
What is the role of the board of directors in ERM?
Answer: Setting risk appetite and overseeing the risk management framework
The board of directors sets the organization's risk appetite and provides oversight of the overall ERM framework.