The ERM Framework Addresses Four Categories of Management Objectives

question 1

Multiple Choice

The ERM framework addresses four categories of management objectives. Which category addresses the effective and efficient use of resources?

• A) compliance
• B) operations
• C) reporting
• D) strategic

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Definitions:

Reasonableness Test

A legal principle used to evaluate whether a decision or action is rational, fair, and sensible within a specific context.

Warning Adequately

A sufficient alert or indication given to inform individuals of a potential danger or risk, ensuring they are properly informed to take preventive measures.

Design Defect

A flaw in the planning or design of a product that makes it unsafe or ineffective for its intended use.

Reasonably Preventable

Referring to measures or actions that can be taken to reasonably avoid or mitigate a certain risk or harm.