Get premium membership and access questions with answers, video lessons as well as revision papers.
-Understand the entity’s risk philosophy and concur with the entity’s risk appetite. Risk appetite is the amount of risk, on a broad level; an organization is willing to accept in pursuit of stakeholder value. Because boards represent the views and desires of the organization‘s key stakeholders, management should have an active discussion with the board to establish a mutual understanding of the organization‘s overall appetite for risks.
Know the extent to which management has established effective enterprise risk management of the organization
-Boards should inquire of management about existing risk management processes and challenge management to demonstrate the effectiveness of those processes in identifying, assessing, and managing the organization‘s most significant enterprise-wide risk exposures.
-Review the entity’s portfolio of risk and consider it against the entity’s risk appetite Effective board oversight of risks is contingent on the ability of the board to understand and assess an organization‘s strategies with risk exposures. Board agenda time and information packets that integrate strategy and operational initiatives with enterprise- wide risk exposures strengthen the ability of boards to ensure risk exposures are consistent with overall appetite for risk.
-Be apprised of the most significant risks and whether management is responding appropriately
Risks are constantly evolving and the need for robust information is of high demand. Regular up-dating by management to boards of key risk indicators is critical to effective board oversight of key risk exposures for preservation and enhancement of stakeholder value.
Titany answered the question on October 26, 2021 at 10:38
- Common challenges in ERM implementation(Solved)
Common challenges in ERM implementation
Date posted: October 26, 2021. Answers (1)
- Typical risk functions in ERM(Solved)
Typical risk functions in ERM
Date posted: October 26, 2021. Answers (1)
- Eight framework components of ERM(Solved)
Eight framework components of ERM
Date posted: October 26, 2021. Answers (1)
- Types and examples of Enterprise Risk Management(Solved)
Types and examples of Enterprise Risk Management
Date posted: October 26, 2021. Answers (1)
- Other Aspects Relevant to the Collective and Individual Roles of Di-rectors of a board(Solved)
Other Aspects Relevant to the Collective and Individual Roles of Di-rectors of a board
Date posted: October 26, 2021. Answers (1)
- Composition, appointment and of the directors of a board in an organization(Solved)
Composition, appointment and of the directors of a board in an organization
Date posted: October 26, 2021. Answers (1)
- Internal and external corporate governance controls
(Solved)
Internal and external corporate governance controls
Date posted: October 26, 2021. Answers (1)
- The roles of the Chairman of the board in an organization(Solved)
The roles of the Chairman of the board in an organization
Date posted: October 26, 2021. Answers (1)
- Role and Functions of the Board in an organization(Solved)
Role and Functions of the Board in an organization
Date posted: October 26, 2021. Answers (1)
- Outline the principle of quality management in an organization(Solved)
Outline the principle of quality management in an organization
Date posted: October 26, 2021. Answers (1)
- Steps of implementing lean in an organization(Solved)
Steps of implementing lean in an organization
Date posted: October 26, 2021. Answers (1)
- Define LEAN as used in management of organizations while stating its tools(Solved)
Define LEAN as used in management of organizations while stating its tools
Date posted: October 26, 2021. Answers (1)
- Describe a Learning organization(Solved)
Describe a Learning organization
Date posted: October 26, 2021. Answers (1)
- The benefits of business excellence for small and medium enterprises(Solved)
The benefits of business excellence for small and medium enterprises
Date posted: October 26, 2021. Answers (1)
- Ways that organizations can assess their systems and performance against Business Excellence Models(Solved)
Ways that organizations can assess their systems and performance against Business Excellence Models
Date posted: October 26, 2021. Answers (1)
- Describe Baldrige Model and European Foundation for Quality Management (EFQM) business excellence models(Solved)
Describe Baldrige Model and European Foundation for Quality Management (EFQM) business excellence models
Date posted: October 26, 2021. Answers (1)
- Define business excellence and state five business excellence models(Solved)
Define business excellence and state five business excellence models
Date posted: October 26, 2021. Answers (1)
- Principles of effective leadership according to Niccolo Machiavelli(Solved)
Principles of effective leadership according to Niccolo Machiavelli
Date posted: October 26, 2021. Answers (1)
- Describe the eight-step change process according to John Kotter(Solved)
Describe the eight-step change process according to John Kotter
Date posted: October 26, 2021. Answers (1)
- Traits / characteristics / features / qualities of effective strategic leaders that leads to
superior performance(Solved)
Traits / characteristics / features / qualities of effective strategic leaders that leads to
superior performance
Date posted: October 26, 2021. Answers (1)