A process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
A)enterprise risk management
B)internal control
C)organizational governance
D)risk assessment

Question

Quizplus · Accepted Answer

The definition provided aligns with the concept of enterprise risk management (ERM), which involves managing risks across an organization in a strategic and comprehensive manner. Internal control refers to the policies and procedures put in place to ensure that an organization's objectives are met and that financial reporting is accurate, reliable, and compliant. Organizational governance refers to the overall framework for how an organization is managed, including the roles and responsibilities of its board of directors and other key stakeholders. Risk assessment is a component of ERM that involves identifying potential risks and assessing their likelihood and impact on an organization's objectives. However, none of the other options fully capture the breadth and scope of the definition provided.

A Process, Effected by an Entity's Board of Directors, Management