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Answer: Improving the top-down communication and coordination in the company
**Explanation:** C is correct. 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. A is incorrect because ERM does not necessarily allow the company to determine and make use of a higher risk appetite. B is incorrect because ERM suggests the opposite of a fragmented approach in risk management. D is incorrect because ERM improves business performance by taking a portfolio view of all risks rather than on a standalone basis.
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The board of directors of a growing asset management company is conducting a review of the firm's approach to risk management. The board concludes that the firm should 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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