Question

A process, effected by an entity's board of directors, management and other personnel, applied in strategy settings 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 is:

a. enterprise risk management
b. internal control
c. organizational governance
d. risk assessment

Answer 1

Enterprise risk management is a process implemented by an entity's board of directors, management, and other personnel to identify potential events that may affect the entity and manage risk to be within its risk appetite, providing reasonable assurance regarding the achievement of entity objectives.

Step-by-step explanation:

The correct answer is a. enterprise risk management. Enterprise risk management is a process that is implemented by an entity's board of directors, management, and other personnel to identify potential events that may affect the entity and manage risk to be within its risk appetite. This process provides reasonable assurance regarding the achievement of entity objectives.