The ERM Framework Is Comprised of Eight Components

question 78

Multiple Choice

The ERM framework is comprised of eight components. Which component includes the policies and procedures established and implemented to help ensure the risk responses are effectively carried out?

• A) control activities
• B) event identification
• C) risk assessment
• D) risk response

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Definitions:

Innovation

The process of creating new ideas, products, or methods, often leading to the improvement of goods, services, or processes.

Primary Activity

In business, it refers to the core activities that are central to the operations of a company, directly related to the creation and delivery of its products or services.

Human Resource Management

The strategic approach to the effective management of people in a company or organization, aiming to help the business gain a competitive advantage.

Procurement

Involves the strategic acquisition of necessary goods and services for organizational operations, emphasizing cost-effectiveness and efficiency.