According to the COSO Enterprise Risk Management (ERM) Framework, Which

question 26

Multiple Choice

According to the COSO enterprise risk management (ERM) framework, which of the following is not a typical responsibility of the chief risk officer?

• A) Establishing risk category definitions and a common risk language for likelihood and impact measures.
• B) Defining ERM roles and responsibilities.
• C) Providing the board with an independent, objective risk perspective on financial reporting.
• D) Guiding integration of ERM with other management activities.

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Definitions:

Marginal Revenue

The additional income that is generated by increasing product sales by one unit.

Marginal Cost

The cost incurred by producing one more unit of a good or service.

Socially Optimal Price

A price level for goods or services that considers the wellbeing of society as a whole, often factoring in externalities.

Deadweight Loss

The diminishing of economic efficiency when equilibrium in the free market for a product or service is not attained.