Organizations are answerable to various regulatory agencies and to their owners.Required filings with regulatory agencies and communications with the owners are considered in an enterprise risk management (ERM)program.The risk associated with regulatory filings and required communications is called
A)strategic risk.
B)governance/compliance risk.
C)operational risk.
D)systems risk.

Question

Quizplus · Accepted Answer

Governance/compliance risk refers to the potential risk of legal or regulatory sanctions, financial loss, or damage to reputation that an organization may face as a result of failing to comply with laws, regulations, or internal policies and procedures. In the context of ERM, regulatory filings and communication with owners are critical components of governance and compliance, and any failure in these areas could lead to significant risk for the organization. Therefore, B is the best choice for this question.

Organizations Are Answerable to Various Regulatory Agencies and to Their