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:

Customer Availability

Describes the extent to which customers can access or purchase goods and services at a given time.

Horizontal Merger

A type of business consolidation that occurs between firms that operate in the same industry.

Vertical Merger

A combination of two or more companies at different stages of production in the same industry.

Conglomerate Company

A large corporation that owns a diversified group of other companies across various industries, with no single business dominating its portfolio.