Final answer:
The 8th component of Enterprise Risk Management (ERM) is Monitoring, which is specifically referred to as 'Monitoring and modifications'. It involves ongoing reviews and necessary adjustments to the risk management process to ensure its effectiveness.
Step-by-step explanation:
The 8th component of Enterprise Risk Management (ERM) is Monitoring. Specifically, this involves Monitoring and modifications. ERM is a comprehensive framework used by organizations to manage risks and seize opportunities related to the achievement of their objectives. The 8th component ensures that the risk management process is not static but is adaptable to changes in the business environment or in the organization itself. This component of ERM involves regular reviews of the risk management process and making necessary adjustments to improve its effectiveness. Monitoring can include both ongoing management activities that are built into business processes and separate evaluations that may be done intermittently, such as audits or reviews by external parties.