This Component of the ERM Framework Encompasses the Tone of an Organization

question 31

Multiple Choice

This component of the ERM framework encompasses the tone of an organization and sets the basis for how risk is viewed and addressed by an entity's people, including risk management philosophy and risk appetite, integrity and ethical values.

• A)control activities
• B)internal environment
• C)risk assessment
• D)risk response

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Definitions:

Indirect Business Taxes

Taxes imposed on the production, sale, or consumption of goods and services, such as sales tax or value-added tax, which are indirectly paid by consumers.

GNP

Gross National Product, a measure of a country's economic performance, accounting for the total value of all goods and services produced over a specific time period.

Domestically Owned Producers

Companies or industries that are owned, controlled, and operated within one's own country.

Exports

Goods or services sent from one country to another for sale, contributing to the national income of the exporting nation.