10/28/22, 10:42 AM SELF TEST COSO ERM FRAMEWORK

SELF TEST COSO ERM FRAMEWORK

Total points 70/100

Answer the questions using CAPITAL LETTERS,  NO COMMA, NO SYMBOL PLS.

IF NUMBER use the format 3200

IF NAME no middle initial

The respondent's email (devera.ryan@clsu2.edu.ph) was recorded on submission of this

form.

27.5 of 34 points

What is IMA? * 1/1

INSTITUTE OF MANAGEMENT ACCOUNTANT

The component that view Enterprise risk management requires a continual 1/1
process of obtaining and sharing necessary information, from both internal
and external sources, which flows up, down, and across the organization.

INFORMATION COMMUNICATION AND REPORTING

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how many principles the latest version of coso framework have? * ···/1

17

What is  the title of the latest version of  ERM FRAMEWORK? * 1/1

ENTERPRISE RISK MANAGEMENT INTEGRATING WITH STRATEGY AND

PERFORMANCE

PwC analyzed all comments received and refined the documents for *1/1
needed modifications. The COSO Board considered whether the Updated
Document is sound, logical, and useful to management of entities of all
types and sizes. PwC finalized the Updated Document and provide the
update to the COSO Board for review and acceptance.

FINALIZATION

What is FEI? * 1/1

FINANCIAL EXECUTIVES INTERNATIONAL

how many responses they received on public comment feedback survey * 1/1

200

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Applying enterprise risk management helps to create trust and instill *0/1
confidence in stakeholders in the current environment, which demands
greater scrutiny than ever before about how risk is actively addressing
and managing these risks.

TRUE

FALSE

who is the current COSO Chair? * ···/1

ROBERT HIRTH JR

The latest version of COSO ERM FRAMEWORK was issued ____ (year) 2/2

2017

With assistance provided by the Advisory Council and oversight of the *1/1
COSO Board, PwC prepared exposure drafts and an on-line questionnaire
to facilitate a review by the general public.

PUBLIC EXPOSURE

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To address this type of Board responsibilities (role), they consider the ···/1
following factors governance and culture; strategy and objective-setting;
performance; information, communications and reporting; and the review
and revision of practices to enhance entity performance .

FRAMEWORK

this phase the PwC, with COSO Board oversight, developed the Updated *1/1
Document, which was reviewed by the COSO Advisory Council and
Observers to gather reactions and suggestions.

BUILD AND DESIGN

WHO served as the author and project leader in developing the latest *···/1
version of coso framework?

DENNIS CHESLEY

Adoption of the COSO ERM Framework is optional to since it is *1/1

incumbent on management to determine if and how to adopt it to
enhance the entity’s ability to create, sustain, and realize value.

TRUE

FALSE

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What is  IIA? 1/1

INSTITUTE OF INTERNAL AUDITORS

It sets the organization’s tone, reinforcing the importance of, and 1/1
establishing oversight responsibilities for, enterprise risk management.

GOVERNANCE

In a changing risk landscape, our understanding of the nature of risk, 1/1

_________, lies at the core of our modern economy.

THE ART AND SCIENCE OF CHOICE

how many components the latest version of coso framework have? * 1/1

who holds overall responsibility for managing risk to the entity, 1/1

MANAGEMENT

What is AICPA? * 1/1

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

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the latest coso framework does not delineates ERM from internal control * 1/1

TRUE

FALSE

a process, effected by an entity’s board of directors, management and 1/1

other personnel, applied in strategy-setting and across the enterprise,
designed to identify potential events that may affect the entity, and manage
risk to be within its risk appetite, to provide reasonable assurance
regarding the achievement of entity objectives

ENTERPRISE RISK MANAGEMENT

A Framework component that look into Risks that may impact the 1/1
achievement of strategy and business objectives  identification and
assessment. Then risks are prioritized by severity in the context of risk
appetite.

PERFORMANCE

stakeholders are more engaged today, thus to manage impact of risk to ···/1
organization they are looking for two  factors that  would also contribute to
critically evaluate leadership’s ability to crystalize opportunities. give one
of the two factors

RISK OF NOT BEING ABLE TO FULFILL UNEXPECTEDLY HIGH DEMAND

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Through literature reviews, global surveys, public roundtables, and *1/1

forums, this phase identified current challenges for organizations
implementing enterprise risk management. During this phase, PwC
analyzed information, reviewed various sources of input, and identified
critical issues and concerns. COSO launched a global survey, available to
the general public, for providing input on the original Framework,
soliciting almost 900 responses.

ASSESS AND ENVISION

how many board members COSO has aside from the Chair? 1/1

ERM provides framework for for boards and management in entities of all *1/1
sizes.

TRUE

FALSE

What is AAA? * 1/1

AMERICAN ACCOUNTING ASSOCIATION

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What is COSO? * 1/1

COMMITTEE OF SPONSORING ORGANIZATIONS OF THE TREADWAY COMMISION

It pertains to ethical values, desired behaviors, and understanding of risk *1/1

in the entity.

CULTURE

The framework component wherein an organization can consider how well 1/1
the enterprise risk management components are functioning over time and
in light of substantial changes, and what revisions are needed.

REVIEW AND REVISIONS

It Analyzes Business Context, Defines Risk Appetite, Evaluates *0.5/1

Alternative Strategies,  and  Formulates Business Objectives

STRATEGIC AND OBJECTING SETTING

CHOOSE THE BEST ANSWER 42.5 of 50 points

IF IDENTIFICATION,  ANSWER SHALL BE IN CAPITAL LETTERS ONLY

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Enterprise risk management is not a function or department. * 1/1

TRUE

FALSE

What is the 1st standard release by COSO? * 1/1

INTERNAL CONTROL INTEGRATED FRAMEWORK

Enterprise risk management can be used by large organizations only . * 1/1

TRUE

FALSE

How many components COSO ERM FRAMEWORK has? * ···/1

2ND PURPOSE of publishing  Enterprise Risk Management—Integrated *···/1

Framework in 2004.

DEVELOP RECOMMENDATIONS TO PREVENT FRAUD

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10/28/22, 10:43 AM SELF TEST COSO ERM FRAMEWORK

Forms the basis of the other components by providing guidance on board *1/1
oversight responsibilities, operating structures, leadership’s tone, and
attracting, developing, and retaining the right individuals.

GOVERNANCE AND CULTURE

Adoption of the Framework is mandatory * 1/1

TRUE

FALSE

Through literature reviews, global surveys, public roundtables, and *1/1

forums, this phase identified current challenges for organizations
implementing enterprise risk management. During this phase, PwC
analyzed information, reviewed various sources of input, and identified
critical issues and concerns. COSO launched a global survey, available to
the general public, for providing input on the original Framework,
soliciting almost 900 responses.

ASSESS AND ENVISION

WHO is the COSO Chair when the 2017 ERM Framework had been *1/1
developed and issued?

ROBERT HIRTH JR

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10/28/22, 10:43 AM SELF TEST COSO ERM FRAMEWORK

How many principles COSO ERM FRAMEWORK has? * 1/1

20

It involves sharing information from internal and external sources *1/1

throughout the organization. Systems are used to capture, process,
manage, and report on the organization’s risk, culture, and performance.

INFORMATION COMMUNICATION REPORTING

Enterprise risk management addresses more than internal control. * 1/1

TRUE

FALSE

Who is the PwC project lead partner of 2017 ERM framework? * 1/1

DENNIS CHESLEY

it assesses any changes that have taken place. This is also the *0.5/1
opportunity to understand how the ERM process in the organization can
be improved upon.

REVIEW AND REVISION

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10/28/22, 10:43 AM SELF TEST COSO ERM FRAMEWORK

choose the PRINCIPLEIN EACH OF THE COMPONENT *

Strategy
Review Information,
Governance &
Performance & Communication Score
& culture Objective
revision & reporting
Setting

Exercises
Board Risk 1/1
Oversight

Prioritizes
Risks & 1/1
performance

Assesses
1/1
Severity of Risk

Reviews Risk
and 1/1
Performance

Defines
1/1
Desired Culture

Defines Risk
1/1
Appetite

Demonstrates
Commitment 1/1
to Core Values

Leverages
Information & 1/1
Technology

Communicates
Risk 1/1
Information

Analyzes
Business 1/1
Context

Formulates
Business 1/1
Objectives

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Develops 1/1
Portfolio View

Assesses
Substantial 1/1
Change

Pursues
Improvement 1/1
in ERM

Reports on
Risk, Culture, & 1/1
Performance

The Board holds overall responsibility for managing risk to the entity, but *1/1
it is important for the Board to go further: to enhance the conversation
with the management and stakeholders about using enterprise risk
management to gain a competitive advantage.

TRUE

FALSE

a FOCUS of ERM wherein It helps organizations to: –Anticipate risks *1/1

earlier or more explicitly, opening up more options for managing the risks;
 Identify and pursue existing and new opportunities and Improve
collaboration, trust, and information sharing

FOCUSES ON INTEGRATION

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After an organization develops its strategy, it then moves on to identify *1/1

and assess risks that could affect its ability to achieve these goals. This
section not only helps guide the organization’s risk identification and
assessment, but also how to prioritize and respond to risks

PERFORMANCE

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10/28/22, 10:43 AM SELF TEST COSO ERM FRAMEWORK

choose the relevant factor *

BOARD RISK
BENEFITS OF
OVERSIGHT Score
EFFECTIVE ERM
ROLE

Responses to
instances of
1/1
deviation from
core values.

Improving
resource ···/1
deployment:

Participating in
investor and
1/1
stakeholder
relations.

Identifying and
managing risk 1/1
entity-wide:

Reducing
performance 1/1
variability:

Approving
management
1/1
incentives and
remuneration.

Enhancing
enterprise 1/1
resilience:

Reviewing
Proposed
1/1
strategy and risk
appetite.

Increasing the
range of 1/1
opportunities:

Review 1/1
Alignment of
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strategy and
business
objectives with
the entity’s
stated VMG.

This component focuses on strategic planning and how the organization *1/1
can understand the effect of internal and external factors on risk

STRATEGY AND OBJECTIVE SETTING

1ST PURPOSE of publishing  Enterprise Risk Management—Integrated *···/1

Framework in 2004.

STUDY FINANCIAL REPORTING

a FOCUS of ERM wherein it Depicts culture behavior within a risk *1/1

spectrum; Explores the possible effects of culture on decision making
and Influences on all aspects of enterprise risk management

RECOGNIZES IMPORTANCE OF CULTURE

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Applying enterprise risk management helps to create trust and instill *0/1
confidence in stakeholders in the current environment, which demands
greater scrutiny than ever before about how risk is actively addressing
and managing these risks.

TRUE

FALSE

With assistance provided by the Advisory Council and oversight of the *1/1
COSO Board, PwC prepared exposure drafts and an on-line questionnaire
to facilitate a review by the general public.

PUBLIC EXPOSURE

What year was the 1st release of COSO ERM integrated framework * ···/1

1992

ERM is  a “one-size-fits-all” program– activities must be tailored to align *0/1

with the benefits

TRUE

FALSE

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a FOCUS of ERM wherein it create, preserve, and realize value. evidenced *1/1
by its prominence in the core definition of enterprise risk management
and Linkage to risk appetite

EMPHASIZES VALUE

ESSAY 0 of 16 points

differentiate ERM with operational risk management * ···/4

Enterprise Risk Management focuses on the administration of risks within the organization
wherein a framework is provided to be the guide. The ERM mitigates various organizational
risks in order for the firm to have appropriate and effective policies and internal controls.
Then, the ORM is only a subset standard of the ERM wherein it focuses on the non-financial
aspects of risks in order to address operational and compliance risks.

what are the similarities & differences with ERM definition of COSO & IIA? * ···/4

Both COSO and IIA define ERM as a risk management and mitigation strategy. They both
acknowledge that ERM is a great component or factor in setting up systems and controls
within the enterprise that gives assurance and assertions about the attainment of the
company’s objectives. Their difference is that COSO’s definition of ERM focused on the
financial reporting and prevention of fraud inside the entity.

who are the regulators involved in the 2017 ERM Framework project *···/4
initiative? what's the role assumed by the regulators and other oversight
bodies

The regulators involved in the 2017 ERM Framework project initiative are the American
Accounting Association, American Institute of Certified Public Accountants, Financial
Executives International, Institute of Management Accountants and The Institute of Internal
Auditors. They highlighted the importance of considering risk in both the strategy-setting
process and in driving performance and provide greater insight into the value of enterprise
risk management when setting and carrying out strategy.

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Briefly discuss a trend that will have an effect on ERM * ···/4

One trend that may have an effect on the ERM is how an organization manages the
emerging risks since risk mitigation teams need to be ahead of their executives and
directors. The emergence of risks affects how the risk managers treat the risks. They can
improperly dissect and negatively manage these risks in order to ease the pressure from the
higher officials of the entity.

WHAT SECTION *

BSAC 3-1

BSAC 3-2

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