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3 votes
Enterprise risk management (erm) includes the systems and process companies use to maximize the effect of risk. a. true b. false

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User Sayris
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7.9k points

1 Answer

3 votes

Answer:

B

Step-by-step explanation:

False.

Enterprise risk management (ERM) is a systematic and integrated approach that organizations use to identify, assess, and manage risks across the entire enterprise. The primary goal of ERM is not to maximize the effect of risk, but rather to identify and mitigate risks in order to protect and enhance the value of the organization.

ERM involves implementing systems and processes that enable companies to identify and evaluate risks, develop risk management strategies, and monitor and respond to risks. It aims to provide a holistic view of risks and their potential impact on the organization, allowing management to make informed decisions and take appropriate actions to manage those risks effectively.

In summary, the objective of ERM is to optimize risk management practices and minimize the negative consequences of risks, rather than maximizing their effect. Therefore, the statement is false.

answered
User A Wizard Did It
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