An Organization Is Beginning to Implement an Enterprise Risk Management

question 380

Multiple Choice

An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

• A) Management will be able to reduce inherent risk because they will have a better understanding of risk.
• B) Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
• C) Stakeholders will have more assurance that the risks are assessed consistently.
• D) Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.

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Definitions:

Method Of Loci

A mnemonic technique that associates information with specific physical locations, enhancing memory recall.

Visual Images

Refers to pictures or scenes that are created in the mind or seen by the eyes, encapsulating both physical and mental visual experiences.

Familiar Place

A location known to an individual through previous experience or frequent visitation, evoking recognition and often comfort.

Forgetting Curves

A graphical representation of how information is lost over time when there is no attempt to retain it.