Enterprise risk management enables management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity's objectives. Enterprise risk management encompasses all of the following EXCEPT:

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Risk Assessment is a component of enterprise risk management, not something it encompasses. The other options are aspects that enterprise risk management aims to achieve.

Enterprise Risk Management Enables Management to Effectively Deal with Uncertainty