Question

Asri has just been appointed as the risk manager of hatta company. he has decided to create a risk management program that considers all risks faced by hatta - pure, speculative, operational, and strategic - in one risk management program. in one risk management program. such a program is called

a) financial risk management program.
b) enterprise risk management program.
c) fundamental risk management program.
d) consequential risk management program.

Answer 1

Asri will create an Enterprise Risk Management (ERM) program to manage all risks in Hatta Company, which is a holistic approach seeking to integrate risk management with the company's strategy and operations.

Step-by-step explanation:

Asri, newly appointed as the risk manager of Hatta Company, has decided to develop a program that addresses all categories of risks including pure risk, speculative risk, operational risk, and strategic risk. Such a comprehensive approach to risk management is best described as an Enterprise Risk Management (ERM) program. ERM is an integrated framework for managing the full spectrum of an organization's risks in a planned and cohesive manner to maximize shareholder value. It considers all potential risks within the context of the company's overall strategy, aligning risk appetite and strategy, and integrating risk management into the business planning and execution processes.