The COSO ERM Model

Question 1

Define “risk response.” (according to the COSO ERM Model)

Answer 1

Management’s response to risk. Depends on management’s risk appetite. May include risk avoidance, reduction, sharing, or acceptance.

Question 2

Define “event identification.” (according to the COSO ERM Model)

Answer 2

Identifying events that might effect - either positively or negatively - the organization’s ability to meet its objectives.

Question 3

Define “compliance objectives.” (according to the COSO ERM Model)

Answer 3

One of four organizational objectives. These are designed to ensure that the organization meets legal and regulatory requirement.

Question 4

Define “reporting objectives.” (according to the COSO ERM Model)

Answer 4

One of four organizational objectives. Information systems goal related to accuracy, completeness, timeliness, and reliability of internal and external reporting.

Question 5

Define “operations objectives.” (according to the COSO ERM Model)

Answer 5

One of four organizational objectives. Goals concerned with day-to-day operating activities.

Question 6

Define “strategic objectives.” (according to the COSO ERM Model)

Answer 6

One of four organizational objectives. High-level goals that support the organizational overall mission.

Question 7

Define “strategic objectives.” (according to the COSO ERM Model)

Answer 7

A company must establish objectives at four levels: strategic, operational, reporting, and compliance