Which of the Following Statements Is FALSE with Regard to the Enterprise

question 27

Multiple Choice

Which of the following statements is FALSE with regard to the Enterprise Risk Management (ERM) framework?

• A) The ERM is primarily focused on the risk aversion of management.
• B) The ERM discusses the relationship between risk and strategy-setting.
• C) The ERM is an ongoing process that permeates the entire company.
• D) The ERM affects strategy-setting through risk identification.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Absolute Value

Represents the distance of a number from zero on the number line, disregarding its direction (positive or negative).

Probability

A branch of mathematics that deals with calculating the likelihood of a given event's occurrence.

Sure Thing

A situation or outcome that is guaranteed to occur or a bet that is certain to win, often used in the context of investments or decisions with a predictable outcome.