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:

Procedural Memories

Memories of motor skills and actions that are performed automatically without conscious thought, such as riding a bike or typing on a keyboard.

False Event

An incident that an individual believes to have occurred, but did not actually happen, often due to the construction of false memories.

Childhood Memories

Recollections of events or experiences from one's early years, which can significantly influence psychological development.

Photograph

An image created by light falling on a photosensitive surface, usually photographic film or an electronic sensor, such as in a digital camera.