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:

Corporate Strategies

The comprehensive plans and actions that a company undertakes to achieve its long-term goals and objectives.

Intended Strategies

These are strategies that an organization plans and decides to implement in order to achieve specific goals or objectives.

Organizational Planning

The process of setting goals and defining the steps needed to achieve them within an organization.

Emergent Strategy

A strategy that arises in the absence of an intentional course of action, developing through patterns in the organization's decisions over time.