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

This best describes the risk response component of the ERM framework, where management selects how to respond to identified risks by avoiding, accepting, reducing, or sharing them. Control activities pertain to the policies and procedures implemented to mitigate risks, event identification refers to the process of identifying potential events that could affect the organization, and risk assessment involves analyzing and evaluating the impact and likelihood of identified risks.

Which Component of the ERM Framework Is Best Described Here