Explanation:
Point I is accurate. Stakeholder management refers to sharing or communicating the information regarding a firm’s internal risk management process to external stakeholders, i.e., shareholders, creditors, regulators, and the public.
Statement II is inaccurate because the “Data technology and resources” element of ERM refers to the improvement of the quality and technology of data used in the evaluation of risks.
Chapter: Enterprise Risk Management and Future Trends
Learning objective: Describe important dimensions of an ERM program and relate ERM to strategic planning.
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Q.82 Which of the following statements inappropriately defines the elements of Enterprise Risk Management (ERM)?
I. Stakeholders management refers to sharing or communicating the information regarding a firm’s internal risk management processes to external stakeholders.
II. Data technology and resources refer to the management of activities that are directly related to the production of products and services of the firm.
A
I only
B
II only
C
Both I & II
D
None of the above
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