​Which of the Following Is the Most Important Reason for an Organization

question 36

Multiple Choice

​Which of the following is the most important reason for an organization to use enterprise risk management?

• A) ​To help an organization achieve its strategy through identifying, measuring, and managing the organization's most important risks and opportunities
• B) ​To ensure complete elimination of all risks that the organization may face
• C) ​To eliminate the possibility of the organization's present value of future cash flows being affected by exchange rate fluctuations
• D) ​To help an organization recover the costs incurred to determine whether products and services conform to quality requirements

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Definitions:

Feedback

Feedback is information provided about the result of an action or process, which can be used for further improvement and adjustment.

Quality Costs

Expenses incurred to prevent, detect, and correct defects in products or services, including costs of warranty and rework.

Appraisal Cost

Expenses associated with the evaluation and inspection of products to ensure quality standards.

Value-added Activity

An operation or process that increases the worth of a product or service, directly contributing to meeting customer requirements.