On the enterprise risk management continuum, the ______ is an organization's culture, the ethical principles and values that define the character of an organization, how the core team of leaders responsible for critical functions view risk, and the extent to which leaders of a company desire risk.
A) Control activity
B) External environment
C) Governance structure
D) Internal environment

Question

Quizplus · Accepted Answer

The internal environment of an organization encompasses its culture, ethical values, and the attitudes towards risk of its core leadership team. This environment shapes how risk is perceived and managed within the organization, influencing the organization's overall approach to enterprise risk management.

On the Enterprise Risk Management Continuum, the ______ Is an Organization's