CRM CRM Enterprise Risk Management 1

Question 1

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

Accepted Answer

Integrate risk management across all business functions

Answer

ERM integrates risk management across all business units to provide a holistic view of organizational risk.

Question 2

Which framework is most commonly associated with ERM implementation?

Accepted Answer

COSO ERM Framework

Answer

The COSO ERM Framework is the most widely recognized standard for implementing enterprise risk 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

Risk appetite defines how much risk an organization is willing to tolerate while pursuing its strategic objectives.

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 risk register is a central repository that documents all identified risks along with their assessment and treatment plans.

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

Risk tolerance is the acceptable variation around risk appetite, defining the boundaries of acceptable risk-taking.

CRM - Certified Risk Manager Practice Test