Question

In a conversation about risk management, Miguel and Rafaela produced a ranked list of their company's risk exposures. The ranked list is most closely related to which element of the COSO framework?

Answer 1

The ranked list of a company's risk exposures produced by Miguel and Rafaela is closely related to the Risk Assessment component of the COSO framework. This activity in risk management includes identifying and prioritizing risks based on potential impact and likelihood.

Step-by-step explanation:

In a conversation about risk management, Miguel and Rafaela produced a ranked list of their company's risk exposures, which is most closely related to the Risk Assessment component of the COSO framework. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework is a widely accepted standard for organizational risk management, internal controls, and fraud deterrence. Risk Assessment involves identifying, assessing, and managing risk, including ranking risks in terms of their potential impact and likelihood, which fits the activity described by Miguel and Rafaela.