Although all eight components of enterprise risk management according to COSO's 2004 ERM framework are important, which is most critical and why?

Question

Quizplus · Accepted Answer

The Answer is The internal environment is critical because it lays the foundation for all other elements of risk management. Specifically, the internal environment reflects the attitudes, approach, and competence of management with regard to enterprise risk management. If owners can hire competent and honest management whose personal goals are aligned with the owners, many other forms of control may be reduced.

Although All Eight Components of Enterprise Risk Management According to COSO's