Answer (B) is correct . “Current” risks should not be considered in isolation. A risk management system must take a broad view of the risks facing the organization.
Answer (A) is incorrect because Prioritizing risks is step 3. In large and/or complex organizations, top management may appoint an ERM committee to review the risks identified by the various operating units and bring them together in a coherent response plan.
Answer (C) is incorrect because Formulating risk responses is step?4. The ERM committee proposes adequate response strategies.
Answer (D) is incorrect because Assessing risks is step 2. Every risk identified must be assessed as to its probability and potential impact.
|
