Which of the Following Concepts Are Fundamental to the Enterprise

question 51

Multiple Choice

Which of the following concepts are fundamental to the Enterprise Risk Management (ERM) framework?

• A) The ERM framework is a process applied across the enterprise
• B) The ERM framework is effected by people to allow the organization to achieve its objectives.
• C) The ERM framework is applied in strategy setting to identify events and manage risk within the organization's risk appetite.
• D) All of the above are concepts fundamental to the ERM framework.

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Definitions:

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.

Net Income

The total profit of a company after accounting for all expenses and taxes; also known as net earnings or net profit.

Cash Receipts

The monetary amounts received by a company during a specific period for goods sold, services provided, or any other business activities.

Bank Loan

A sum of money borrowed from a bank that must be repaid with interest over a predetermined period.