Which Component of the ERM Framework Is Best Described Here

question 116

Multiple Choice

Which component of the ERM framework is best described here: Management selects whether to avoid, accept, reduce, or share risk - developing a set of actions to align risks with the entity's risk tolerances and risk appetite.

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

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Definitions:

Bottom Line

Refers to the net income of a company, indicating its profitability, or alternatively, the most important or fundamental aspect of a situation.

Ethical Turmoil

A state of confusion or disorder caused by complex ethical decisions or dilemmas, often leading to moral distress.

Corporate Responsibility

Corporate responsibility refers to a business's commitment to act ethically and contribute positively to societal and environmental well-being beyond mere profit generation.

Archie B. Carroll

A scholar notable for his contributions to corporate social responsibility, especially his pyramid model outlining the responsibilities of businesses.