CGEIT: Certified in the Governance of Enterprise ITDemo

By Isaca · Question Mode

QuestionQ376

Risk Optimization

An enterprise’s board of directors can BEST manage enterprise risk by:

  • A mandating board-approved enterprise risk management (ERM) modifications.
  • B requiring the establishment of an enterprise-wide program management office.
  • C ensuring the cost-effectiveness of the internal control system.
  • D requiring the establishment of an enterprise risk management (ERM) framework.
Explanation

An enterprise risk management (ERM) framework establishes the governance structure and consistent process for managing risk across the enterprise. Requiring this framework is an appropriate board-level responsibility; detailed changes to ERM, program-office establishment, and internal-control cost management are management activities.

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