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Answer: Effective risk governance requires multiple levels of accountability and authority
**Correct Answer: C** **Explanation:** - **Option A** is incorrect because while management plays a crucial role in risk oversight, the board of directors is ultimately responsible for risk governance oversight. - **Option B** is partially correct but not the best answer - a risk committee is indeed useful, but this doesn't capture the comprehensive nature of effective risk governance. - **Option C** is correct because effective risk governance requires a clear framework with multiple levels of accountability and authority, from the board of directors down to individual business units. - **Option D** is incorrect because the goal of risk governance is not to minimize risk, but to ensure risks are properly identified, measured, monitored, and managed within the organization's risk appetite.
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Which of the following statements regarding corporate risk governance is correct?
A
Management of the organization is ultimately responsible for risk oversight.
B
A risk committee is useful for enforcing the firm's risk governance principles.
C
Effective risk governance requires multiple levels of accountability and authority
D
The point of risk governance is to minimize the amount of risk taken by the organization.
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