Which component of the ERM framework is best described here: Management selects whether to avoid, accept, reduce, or share risk - developing a set of actions to align risks with the entity's risk tolerances and risk appetite.
A) control activities
B) event identification
C) risk assessment
D) risk response

Question

Quizplus · Accepted Answer

Risk response is the component of the ERM framework that involves management's selection of whether to avoid, accept, reduce, or share risks and the development of actions to align risks with the entity's risk tolerances and risk appetite.

Which Component of the ERM Framework Is Best Described Here