Explanation:
Implementation of ERM requires integration. Appointing a CRO and establishing a centralized, integrated risk management team can better address the interdependencies among individual risks faced by the company and thus increase efficiency.
Why other options are incorrect:
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The board of directors of a growing asset management company has recommended that the firm establish an ERM framework. Which of the following represents a key benefit that the firm will likely attain after establishing an ERM framework?
A
Allowing the company to determine and make use of a higher risk appetite
B
Finding the optimal reporting methodology for each risk function
C
Improving the top-down communication and coordination in the company
D
Taking advantage of the new opportunities that create value on a standalone basis
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