Answer both they are part of one question
42 a) One of the most important effects on a company as a result of using ERM is
Select one:
a. the appointment of a Chief Risk Officer
b. a team member appointed in each unit of the firm who focuses on
reporting risks to his/her supervisor
c. increased risks in every category of risk but well-reported to
senior management
d. de-centralization of risk functions
42 b)A definition by Lam of an enterprise risk management system would
Select one:
a. not include maximizing the firm's market price per share
b. include managing seven key risks
c. focus on the silo approach to risk management across the
company
d. avoid focusing on the firm's business objectives
42) The answer is option D de-centralization of risk functions.
ERM is the comprehensive analysis and management of all risks facing the organisations, including financial, operational, and compliance risk. Stronger internal controls, more effective corporate governance, and implementation of ERM can lead to improved stability, reaction time, and increased shareholder value. Instead of managing risk in many individual silos, ERM takes an integrated and holistic perspective on risks facing an organisation.
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