Reference no: EM133240070

1. The Enterprise Risk Management-Integrated Framework of the Committee of Pponsoring Organizations (COSO) is best defined as a:

A. Process that takes a control-based approach to an organization

B. Process that replaces the COSO internal control framework

C. Process effected by an entity's board of directors, management, and other personnel

D. Serial process in which one component affects only the next component

2. Each of the following is a limitation of enterprise risk management (ERM), except:

A. ERM can provide absolute assurance with respect to objective categories

B. ERM operates at different levels with respect to different business objectives

C. ERM is as effective as the people responsible for its functioning

D. ERM deals with risk, which relates to the future and is inherently uncertain

3. According to COSO's Enterprise Risk Management Framework, which of the following is an essential element of the governance and culture?

A. Information, communication, and reporting

B. Commitment to core values

C. Performance

D. Strategy and objective-setting

4. In the event identification component of the COSO ERM framework, management must classify events into which of the following?

A. Controls and vulnerabilities

B. Risks and opportunities

C. Risks and rewards

D. Weaknesses and vulnerabilities

5. The performance component of COSO's Enterprise Risk Management framework is supported by which of the following activites?

A. Approving a risk appetite statement

B. Establishing an organizational structure

C. Establishing operational, reporting, and compliance objectives

D. Event identification

6. The results from PESTLE and SWOT analyses are typical used in:

A. Risk monitoring

B. Risk assessment

C. Risk response

D. Event identification

7. Able Corporation is keenly aware that it is highly-susceptible to business interruption events resulting from weather-related damages. The company elects to treat the potential losses from the weather-related damages as part of their business model. Able's response to the potential risks is known as:

A. Acceptance

B. Reduction

C. Sharing

D. Avoidance

8. Able Corporation is keenly aware that it is highly-susceptible to business interruption events resulting from weather-related damages. The company signs a contract with IBM in which IBM will provide cloud computing resources to allow Able Corporation to continue its business if its computing facilities are damaged or destroyed. Able's response to the potential risks is known as:

A. Avoidance

B. Reduction

C. Sharing

D. Acceptance

9. As part of its mission statemnt, Able Corporation states that it will only use locally-sourced raw materials in its products. Able Corporation identified that it would have difficulty sourcing raw materials locally for one of its product lines. It decided to relocate its production facilities for the product line to access locally-souced materials. Able's response to the potential risks is known as:

A. Avoidance

B. Acceptance

C. Sharing

D. Reduction

10. As part of its mission statemnt, Able Corporation states that it will only use locally-sourced raw materials in its products. Able Corporation identified that it would have difficulty sourcing raw materials locally for one of its product lines. It decided to discontinue the product line due to the lack of availability of locally-souced materials. Able's response to the potential risks is known as:

A. Reduction

B. Acceptance

C. Avoidance

D. Sharing