Explanation:
ERM allows managers to focus on the largest threats to the firm—threats to the firm's survival—rather than day-to-day threats to specific units and business lines.
(Book 1, Module 8.1, LO 8.b)
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Question 24
There are many benefits of an enterprise-risk-management (ERM) approach to managing risks. Which of the following statements is least accurate regarding these benefits? ERM:
A
identifies threats to the entire operation that arise from individual business lines.
B
helps managers understand crossover risks and correlations between specific risk types.
C
helps managers define the risk appetite of the entire enterprise and helps firms adhere to the constraints put on risk.
D
allows managers to focus on day-to-day threats to specific units and business lines rather than the largest threats to the firm.
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