Choice "D" is correct. In order for the operating efficiencies contemplated by enterprise risk management to operate effectively, there cannot be material weaknesses in internal control.
Choices "a", "c", and "b" are incorrect. Enterprise risk management is associated with the identification and evaluation of risk and the balancing of those risks with profitability and growth objectives. Recent operating losses, reliance on unconsolidated subsidiaries, and extraordinary losses would not preclude the effective operation of enterprise risk management concepts.
