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:

Objectives

Specific, measurable goals that are intended to be achieved within a set timeframe.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Integration

The process of attaining coordination across differentiated departments.

Decision-making Authority

The power or right vested in individuals or groups to make important decisions regarding policies, practices, or procedures within an organization.