When Announcing That an Enterprise Risk Management Program Would Be

question 56

Multiple Choice

When announcing that an enterprise risk management program would be implemented at XYZ Company,the president of the company observed,"We must overcome the silo mentality for the program to be successful." The "silo mentality" refers to

• A)over-emphasis on pure risks and ignoring speculative risks.
• B)using too much of one risk treatment measure and ignoring other risk treatment methods.
• C)focusing narrowly on one area and not viewing risk holistically.
• D)everyone assuming someone else is responsible for managing a risk and no one taking leadership.

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Definitions:

Interference

A cause of forgetting that occurs because information or associations stored either before or after a given memory hinder the ability to remember it.

Consideration Failure

An oversight or neglect in thoroughly thinking through or regarding all aspects and consequences of a decision or action.

Encoding Failure

The inability to create a memory link because the information was not attended to or analyzed deeply enough.

Proactive Interference

The tendency for earlier learned material to interfere with the retention of new information.