Which of the following role carriers are responsible for setting up the risk governance process, establishing and maintaining a common risk view, making risk- aware business decisions, and setting the enterprise's risk culture? Each correct answer represents a complete solution.
Choose two.
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A. B. C. D.AD.
The board of directors and senior management has the responsibility to set up the risk governance process, establish and maintain a common risk view, make risk-aware business decisions, and set the enterprise's risk culture.
Incorrect Answers: B: CFO is the most senior official 0f the enterprise who is accountable for financial planning, record keeping, investor relations and financial risks.
CFO is not responsible for responsible for setting up the risk governance process, establishing and maintaining a common risk view, making risk-aware business decisions, and setting the enterprise's risk culture.
C: Human resource is the most senior official of an enterprise who is accountable for planning and policies with respect to all human resources in that enterprise.
HR is not responsible for risk related activities.
The correct answers are A. Senior management and D. Board of directors.
Senior management and the Board of Directors are responsible for setting up the risk governance process and establishing a common risk view throughout the organization. They are also responsible for making risk-aware business decisions and setting the enterprise's risk culture.
Senior management is responsible for implementing and managing the risk management process within their respective business units. This involves establishing risk management policies and procedures, defining risk tolerances, and monitoring risk levels. Senior management also ensures that the appropriate resources are allocated to manage risks effectively.
The Board of Directors is responsible for overseeing the overall risk management process and ensuring that risks are managed effectively across the organization. They set the risk management strategy and ensure that it aligns with the organization's objectives. The Board also ensures that senior management is held accountable for managing risks effectively.
The CFO and HR departments may play important roles in the risk management process, but they are not responsible for setting up the risk governance process, establishing a common risk view, making risk-aware business decisions, and setting the enterprise's risk culture. The CFO may provide financial insights to the risk management process, while HR may be responsible for ensuring that the organization's risk culture is integrated into the company's culture and values. However, these departments do not have the authority to set the overall risk management strategy or make risk-related decisions.