A process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives is referred to as:
A)Enterprise resource planning
B)Enterprise risk management
C)IT system control structure
D)Corporate governance structure

Question

A process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives is referred to as:
A)Enterprise resource planning 
B)Enterprise risk management
C)IT system control structure
D)Corporate governance structure

Quizplus · Accepted Answer

The description provided aligns with the definition of enterprise risk management, which involves identifying, assessing, and managing risks across an organization to ensure the achievement of objectives within the entity's risk appetite. The other options are not relevant to the provided description.

A Process, Effected by an Entity's Board of Directors, Management