Question

This component of the ERM framework concerns the entirety of enterprise risk management and is accomplished through ongoing management activities, separate evaluations, or both.

a. true
b. false

Answer 1

The true or false statement concerns the monitoring component of the ERM framework, which is true. Monitoring is critical in ERM and is conducted through continuous management activities and separate evaluations to manage risks effectively.

Step-by-step explanation:

The question refers to a component within the Enterprise Risk Management (ERM) framework which emphasizes that managing enterprise risk is not just a periodic activity, but an integral part of ongoing management processes. In ERM, this component, often called monitoring, is critical as it ensures risks are identified and managed proactively. Monitoring in the ERM context can take two forms: it can either be built into business processes and activities as a continuous activity or conducted through separate, periodic evaluations to make certain that the risk management practices are adequate and functioning properly.

True or False questions on examinations require students to determine if a given statement is correct. In this case, the statement in question is true because monitoring is indeed central to the whole concept of ERM and is achieved through both ongoing management activities and separate evaluations.