The Portfolio View of ERM Is One in Which Management

question 10

Multiple Choice

The portfolio view of ERM is one in which management reduces risks to acceptable levels by:

• A) sharing risks with employees.
• B) considering individual business unit risks and then aggregating those risks across the entity.
• C) avoiding the use of third party service providers in all instances except those with the highest risk of business interruption.
• D) terminating all entity activities that cause significant risk.

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Definitions:

Germany

A federal parliamentary republic in Central and Western Europe, known for its history, culture, and economy.

Partnership

A business arrangement where two or more individuals share ownership, profits, and liabilities of a venture.

Control of Business

The authority to direct the significant policies and decisions of a company or entity, often through ownership of a majority of voting shares.

Profits Equally

A principle where all parties involved in a business venture or agreement share the generated profits equally.