CRM CRM Enterprise Risk Management

Question 1

What is the primary goal of Enterprise Risk Management (ERM)?

Accepted Answer

Integrate risk management across all business functions

Answer

Eliminate all organizational risks

Answer

Focus solely on financial risks

Answer

Transfer all risks to insurers

Question 2

Which framework is most commonly associated with ERM implementation?

Accepted Answer

COSO ERM Framework

Answer

ISO 9001

Answer

Six Sigma

Answer

Lean Management

Question 3

In ERM, what does 'risk appetite' refer to?

Accepted Answer

The amount of risk an organization is willing to accept in pursuit of its objectives

Answer

The maximum loss an organization can absorb

Answer

The total number of risks identified

Answer

The cost of risk mitigation measures

Question 4

What is a risk register in ERM?

Accepted Answer

A document that records identified risks, their likelihood, impact, and mitigation strategies

Answer

A list of insurance policies

Answer

A financial report on losses

Answer

A compliance checklist

Question 5

Which of the following best describes 'risk tolerance' in ERM?

Accepted Answer

The acceptable variation around risk appetite defining boundaries of risk-taking

Answer

The ability to withstand catastrophic losses

Answer

The minimum risk required for operations

Answer

The risk transfer mechanism

Question 6

What is the role of the board of directors in ERM?

Accepted Answer

Setting risk appetite and overseeing the risk management framework

Answer

Conducting daily risk assessments

Answer

Processing insurance claims

Answer

Performing operational audits