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Enterprise risk management considers all risks simultaneously and manages risk in a holistic context.

A) True
B) False

1 Answer

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Final answer:

Enterprise risk management considers all risks simultaneously and manages risk in a holistic context.

Step-by-step explanation:

True

Enterprise Risk Management (ERM) indeed aims to consider and manage all risks simultaneously within an organization, fostering a holistic and integrated approach to risk management. ERM goes beyond the traditional siloed view of risks and encourages a comprehensive understanding of the interrelated and interconnected nature of risks across different business functions. By adopting a holistic context, ERM enables organizations to identify, assess, prioritize, and manage risks in a coordinated manner that aligns with the overall strategic objectives. This approach recognizes that risks are dynamic, diverse, and often interconnected, requiring a unified framework for effective risk mitigation. ERM provides a strategic and organizational-wide perspective, emphasizing proactive risk management practices that contribute to sustained resilience and value creation within the enterprise.

Enterprise risk management considers all risks simultaneously and manages them in a holistic context. This means that it takes into account all potential risks facing an organization and develops strategies to mitigate and manage those risks comprehensively.

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