The COSO Enterprise Risk Management Integrated Framework Stresses That

question 48

Multiple Choice

The COSO Enterprise Risk Management Integrated Framework stresses that

• A)risk management activities are an inherent part of all business operations and should be considered during strategy setting.
• B)effective risk management is comprised of just three interrelated components;internal environment,risk assessment,and control activities.
• C)risk management is the sole responsibility of top management.
• D)risk management policies,if enforced,guarantee achievement of corporate objectives.

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Definitions:

Operating Cash Inflows

The money received by a company from its normal business operations.

Incremental Cost Approach

A decision-making process that focuses on the costs that will change if an action is taken, compared to if it is not taken.

Discount Rate

The interest rate used to discount future cash flows to their present value in capital budgeting projects.

Salvage Value

The projected amount an asset is expected to yield upon being sold at the conclusion of its usable lifespan.