CRMA Risk Management Frameworks 2

Question 1

The COSO ERM 2017 framework is organized around how many interrelated components?

Accepted Answer

Five

Answer

Three

Answer

Seven

Answer

Nine

Question 2

Which COSO ERM 2017 component specifically addresses how an organization defines its risk appetite in the context of business strategy?

Accepted Answer

Strategy & Objective-Setting

Answer

Governance & Culture

Answer

Review & Revision

Answer

Performance

Question 3

How does COSO ERM 2017 differ most significantly from the original COSO ERM 2004 framework?

Accepted Answer

It explicitly integrates ERM with strategy and performance

Answer

It removes the internal environment component

Answer

It reduces the number of risk categories from eight to five

Answer

It focuses exclusively on financial reporting risk

Question 4

Under the COSO ERM 2017 'Performance' component, which activity involves identifying the severity of risks relative to risk appetite?

Accepted Answer

Risk prioritization

Answer

Risk governance

Answer

Risk communication

Answer

Risk financing

Question 5

In COSO ERM 2017, the 'Information, Communication & Reporting' component primarily supports which activity?

Accepted Answer

Enabling informed risk decisions across the organization

Answer

Setting strategic objectives

Answer

Identifying inherent risk

Answer

Establishing board-level risk committees

Question 6

Which principle belongs to the 'Governance & Culture' component of COSO ERM 2017?

Accepted Answer

Defines desired culture

Answer

Identifies risk

Answer

Assesses severity of risk

Answer

Develops portfolio view

Question 7

The COSO ERM 2017 'Review & Revision' component is most analogous to which phase of a standard management cycle?

Accepted Answer

Check and Act

Answer

Plan

Answer

Do

Answer

Define