CRMA Risk Management Frameworks 2

Question 1

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

Accepted Answer

Five

Answer

COSO ERM 2017 contains five interrelated components: Governance & Culture, Strategy & Objective-Setting, Performance, Review & Revision, and Information, Communication & Reporting.

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

The Strategy & Objective-Setting component is where the organization links risk appetite to strategy and articulates business objectives.

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

The 2017 update explicitly linked enterprise risk management to strategy-setting and performance, reflecting that ERM is not just a compliance exercise.

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 prioritization within the Performance component involves assessing the severity of identified risks and ranking them relative to the organization's risk appetite.

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

This component ensures that relevant, quality information about risk is communicated throughout the organization to support decision-making at all levels.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA Risk Management Frameworks 2