Question 1

​After determining risk appetite, enterprise risk management process immediately involves:

Accepted Answer

After determining risk appetite, the next step in the enterprise risk management process is to identify the most important risks to ensure they are managed in alignment with the organization's risk appetite.

Question 2

​The U.S.government has set up _________, which are areas near a customs port of entry that are physically on U.S.soil but are considered to be outside U.S.commerce.

Accepted Answer

The answer of ​The U.S.government has set up _________, which...

Question 3

​A company has decided to sell off a business unit as the management believes it cannot manage the associated risk(s) in a cost-beneficial manner.Which of the following risk response alternatives is represented by this example?

Accepted Answer

Selling off a business unit is a clear example of risk avoidance where the company chooses to eliminate the risk altogether by getting rid of the business unit.

Question 4

​To avoid an inherent risk means that the company:

Accepted Answer

Avoiding an inherent risk involves ceasing the activity that originally gave rise to the risk, thereby eliminating the risk entirely.

Question 5

​Which of the following is true of an inherent risk?

Accepted Answer

An inherent risk is the probability or likelihood of a risk occurring multiplied by the impact should it actually occur.

Question 6

​A(n) _________ is the gain on the exchange of one currency for another due to appreciation of the home currency.

Accepted Answer

The answer of ​A(n) _________ is the gain on the...

Question 7

​Which of the following statements is true of the risk appetite determination step within the enterprise risk management (ERM) process of an organization?

Accepted Answer

Determining an organization's risk appetite involves deciding on the organization's desired level of risk taking. The process involves considering the organization's objectives, external and internal factors, and constraints to determine the acceptable level of risk. The other options may be involved in the ERM process but do not accurately describe the risk appetite determination step.

Question 8

​Which of the following is true of enterprise risk management (ERM)?

Accepted Answer

Enterprise risk management is a process of identifying and analyzing risks that an organization faces, and taking necessary actions to manage those risks in the best way possible. It helps organizations make better decisions in uncertain business environments, by providing a systematic approach to identify, assess, prioritize, and manage all potential risks to the organization. While it is true that some organizations engage in some type of ERM, it is not true that only small organizations with sales revenue of $1 million or less engage in ERM. Additionally, it is not possible for any organization to have perfect ERM systems, as risks are always present and changing. Finally, the ultimate goal of ERM is not complete elimination of all risks, but rather to manage them in a way that protects the organization's objectives and maximizes opportunities.

Question 9

​Enterprise risk management (ERM) uses a portfolio perspective to ensure:

Accepted Answer

ERM aims to align the organization's residual risks, which are the risks remaining after controls are applied, with its risk appetite, ensuring that these risks are within acceptable limits.

Question 10

​Risk response net benefit is measured as the:

Accepted Answer

Risk response net benefit is measured as the benefit of risk response minus the cost of risk response. This means that the positive impact of implementing a particular risk response should exceed the cost incurred while implementing it. It is calculated to determine the effectiveness of a particular risk response strategy.

Question 11

​The _________ is a model that explains the factors causing someone to commit fraud.

Accepted Answer

The answer of ​The _________ is a model that explains...

Question 12

​Which of the following is true of a residual risk?

Accepted Answer

A residual risk is the risk that remains after all risk management actions have been taken. It is the risk that cannot be eliminated completely, and therefore, it is important to consider in any risk management plan. Options A, B, and D do not accurately describe a residual risk.

Question 13

The _________ is made up of all the processes that a product must pass through, from the initial customer order to the delivery to the customer.

Accepted Answer

The answer of The _________ is made up of all...

Question 14

_________ is defined as wrongful or criminal deception intended to result in financial or personal gain.​

Accepted Answer

The answer of _________ is defined as wrongful or criminal...

Question 15

​Risk response benefit can be defined as:

Accepted Answer

BThe benefit of a risk response can be defined in two ways: A) as the difference between an inherent risk (the risk before any actions are taken to manage it) and a residual risk (the remaining risk after the risk response has been implemented), which essentially measures the effectiveness of the risk response in reducing the risk. B) as the benefit of the risk response minus the cost of implementing that response, which evaluates the net gain or value added by taking the risk response action.

Question 16

​Which of the following is the most important reason for an organization to use enterprise risk management?

Accepted Answer

The most important reason for an organization to use enterprise risk management is to help it achieve its strategy by identifying, measuring, and managing its most important risks and opportunities. This involves a systematic and comprehensive approach to risk management that considers all aspects of the organization and its objectives, and enables informed decision-making and effective allocation of resources. The other options presented are not related to the primary purpose of enterprise risk management.

Question 17

A _________ is one that does not conform to quality specifications.​

Accepted Answer

The answer of A _________ is one that does not...

Question 18

​Which of the following steps within the enterprise risk management (ERM) process should occur immediately after the risk assessment?

Accepted Answer

After completing the risk assessment, the next step in the ERM process is to develop a plan for responding to the identified risks. This includes evaluating various risk responses (avoid, transfer, mitigate, or accept) and selecting the most appropriate response for each identified risk. This process is known as risk response planning.

Question 19

_________ requires suppliers to deliver parts and materials just in time to be used in production, eliminating the need for materials inventories.​

Accepted Answer

The answer of _________ requires suppliers to deliver parts and...

Question 20

​An organization's overall desired level of risk taking is referred to as its:

Accepted Answer

Risk appetite refers to an organization's overall desired level of risk taking. It is the amount of risk that an organization is willing to accept in pursuit of its objectives. Residual risk is the risk that remains after risk mitigation measures have been implemented. Risk assessment ability and risk response are related to the process of assessing and responding to specific risks, rather than an organization's overall level of risk tolerance.

Quiz 13: Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

After determining risk appetite, enterprise risk management process immediately involves:

The U.S.government has set up _________, which are areas near a customs port of entry that are physically on U.S.soil but are considered to be outside U.S.commerce.

A company has decided to sell off a business unit as the management believes it cannot manage the associated risk(s) in a cost-beneficial manner.Which of the following risk response alternatives is represented by this example?

To avoid an inherent risk means that the company:

Which of the following is true of an inherent risk?

A(n) _________ is the gain on the exchange of one currency for another due to appreciation of the home currency.

Which of the following statements is true of the risk appetite determination step within the enterprise risk management (ERM) process of an organization?

Which of the following is true of enterprise risk management (ERM) ?

Enterprise risk management (ERM) uses a portfolio perspective to ensure:

Risk response net benefit is measured as the:

The _________ is a model that explains the factors causing someone to commit fraud.

Which of the following is true of a residual risk?

The _________ is made up of all the processes that a product must pass through, from the initial customer order to the delivery to the customer.

_________ is defined as wrongful or criminal deception intended to result in financial or personal gain.

Risk response benefit can be defined as:

Which of the following is the most important reason for an organization to use enterprise risk management?

A _________ is one that does not conform to quality specifications.

Which of the following steps within the enterprise risk management (ERM) process should occur immediately after the risk assessment?

_________ requires suppliers to deliver parts and materials just in time to be used in production, eliminating the need for materials inventories.

An organization's overall desired level of risk taking is referred to as its:

Quiz 13: Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

​After determining risk appetite, enterprise risk management process immediately involves:

​The U.S.government has set up _________, which are areas near a customs port of entry that are physically on U.S.soil but are considered to be outside U.S.commerce.

​A company has decided to sell off a business unit as the management believes it cannot manage the associated risk(s) in a cost-beneficial manner.Which of the following risk response alternatives is represented by this example?

​To avoid an inherent risk means that the company:

​Which of the following is true of an inherent risk?

​A(n) _________ is the gain on the exchange of one currency for another due to appreciation of the home currency.

​Which of the following statements is true of the risk appetite determination step within the enterprise risk management (ERM) process of an organization?

​Which of the following is true of enterprise risk management (ERM) ?

​Enterprise risk management (ERM) uses a portfolio perspective to ensure:

​Risk response net benefit is measured as the:

​The _________ is a model that explains the factors causing someone to commit fraud.

​Which of the following is true of a residual risk?

The _________ is made up of all the processes that a product must pass through, from the initial customer order to the delivery to the customer.

_________ is defined as wrongful or criminal deception intended to result in financial or personal gain.​

​Risk response benefit can be defined as:

​Which of the following is the most important reason for an organization to use enterprise risk management?

A _________ is one that does not conform to quality specifications.​

​Which of the following steps within the enterprise risk management (ERM) process should occur immediately after the risk assessment?

_________ requires suppliers to deliver parts and materials just in time to be used in production, eliminating the need for materials inventories.​

​An organization's overall desired level of risk taking is referred to as its:

After determining risk appetite, enterprise risk management process immediately involves:

The U.S.government has set up _________, which are areas near a customs port of entry that are physically on U.S.soil but are considered to be outside U.S.commerce.

A company has decided to sell off a business unit as the management believes it cannot manage the associated risk(s) in a cost-beneficial manner.Which of the following risk response alternatives is represented by this example?

To avoid an inherent risk means that the company:

Which of the following is true of an inherent risk?

A(n) _________ is the gain on the exchange of one currency for another due to appreciation of the home currency.

Which of the following statements is true of the risk appetite determination step within the enterprise risk management (ERM) process of an organization?

Which of the following is true of enterprise risk management (ERM) ?

Enterprise risk management (ERM) uses a portfolio perspective to ensure:

Risk response net benefit is measured as the:

The _________ is a model that explains the factors causing someone to commit fraud.

Which of the following is true of a residual risk?

_________ is defined as wrongful or criminal deception intended to result in financial or personal gain.

Risk response benefit can be defined as:

Which of the following is the most important reason for an organization to use enterprise risk management?

A _________ is one that does not conform to quality specifications.

Which of the following steps within the enterprise risk management (ERM) process should occur immediately after the risk assessment?

_________ requires suppliers to deliver parts and materials just in time to be used in production, eliminating the need for materials inventories.

An organization's overall desired level of risk taking is referred to as its: