Question

What is the primary distinguishing characteristic of an enterprise risk management framework?

Emphasis on strategic risks that threaten organizational goals



Focus on values and ethical systems that affect governance



Proactive, as opposed to reactive, approach to managing risk



Perception of risk as an integrated organizational issue

Answer 1

The primary distinguishing feature of enterprise risk management is seeing risk as an integrated organizational issue, which is a holistic, proactive approach to managing various levels of risks in line with organizational goals.

Step-by-step explanation:

The primary distinguishing characteristic of an enterprise risk management (ERM) framework is the perception of risk as an integrated organizational issue. Unlike traditional risk management approaches that may handle risks within siloed departments, an ERM framework views risk management in a holistic manner. This allows an organization to assess, manage, and make strategic decisions considering the full spectrum of risks that could affect its objectives. For instance, it involves integrating risk management practices into business processes, decision-making, and strategy setting. By doing so, an organization embraces a proactive approach to manage risk, rather than a reactive one, and focuses on risks at all levels that could impede the achievement of its strategic goals. Furthermore, this approach to