Enterprise Risk Committee Responsibilities
Question
Which of the following are the responsibilities of Enterprise risk committee? Each correct answer represents a complete solution.
Choose three.
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D.BCD.
Risk aware decision, analyzing risk, and articulating risk are the responsibilities of Enterprise risk committee.
They are the executives who are accountable for the enterprise level collaboration and consensus required to support enterprise risk management (ERM) activities and decisions.
An IT risk council may be established to consider IT risk in more detail and advise the enterprise risk committee.
ERC ensure that these activities are completed successfully.
Incorrect Answers: A: ERM is not responsible for reaction over risk events.
Business process owners are accounted for this task.
The Enterprise Risk Committee (ERC) is a group of senior-level executives responsible for overseeing and managing an organization's enterprise risk management program. The ERC is responsible for ensuring that the organization is identifying and mitigating risks that may affect the achievement of its objectives.
The following are the responsibilities of the Enterprise Risk Committee:
Analyze risk: The ERC analyzes risks and identifies potential areas of concern for the organization. This involves reviewing various risk management reports, conducting risk assessments, and monitoring trends and developments that may impact the organization's risk profile.
Risk aware decision: The ERC ensures that the organization's decision-making process is risk-aware. This means that the ERC provides guidance and advice to senior management on how to integrate risk management considerations into the decision-making process.
Articulate risk: The ERC communicates the organization's risk profile to senior management and the board of directors. This involves identifying and articulating key risks that may impact the organization's objectives and ensuring that appropriate risk mitigation strategies are in place.
Therefore, options B, C, and D are correct answers as they represent the responsibilities of the Enterprise Risk Committee. Option A, "React to risk events," is not a primary responsibility of the ERC. While the ERC may be involved in responding to risk events, their primary focus is on identifying and mitigating risks before they become events.
