Which ERM component involves the risk management philosophy of the enterprise,including the tone set by top management?

Question

Quizplus · Accepted Answer

The internal environment component of ERM involves the risk management philosophy of the enterprise, including the tone set by top management. This includes factors such as the organization's culture, ethics, values, and operating style, which are likely to influence the organization's risk appetite and approach to risk management. Control activities, information and communication, and event identification are all other components of ERM that are important for effective risk management, but they do not directly relate to the organization's philosophy or culture.

Which ERM Component Involves the Risk Management Philosophy of the Enterprise,including