The concept of enterprise risk management encourages FIs to manage all of the risks to which they are exposed as a portfolio, rather than managing each risk individually.

Question

Quizplus · Accepted Answer

Enterprise risk management (ERM) is a comprehensive approach to managing all the risks that an organization faces. It encourages FIs to identify, assess, prioritize, and manage all types of risks as a portfolio, rather than treating each risk in isolation. ERM provides FIs with a holistic view of their risk exposure, allowing them to make more informed decisions and take a proactive approach to risk management.

The Concept of Enterprise Risk Management Encourages FIs to Manage