1. In the ERM function of a company, risk assessment reviews (RARs) will:

1. Report on risk-related examinations in key enterprise areas
2. Make recommendations for improving internal controls
3. Make recommendations for reducing risk likelihood
4. All of the above

2. An effective risk management function in a large company would be headed by a ____, an executive whose responsibility is to ascertain that enterprise risks are properly understood and translated into meaningful business requirements, objectives, and metrics.

1. Chief audit executive (CAE)
2. Chief information officer (CIO)
3. Chief risk officer (CRO)
4. Chief financial officer (CFO)

3. An annual risk assessment action plan would:

1. Assign responsibilities for the coverage of various risk events
2. Estimate the enterprise risk groups time to correct and review the risk event
3. Include time and budget estimates for the correction
4. All of the above

4. The purpose of distributing risk assessment guideline signoff form is to:

1. Catch an employee who signed the form for some financial transaction that resulted in a risk-related failure
2. To encourage all stakeholders to acknowledge that they have considered potential risks when authorizing and approving any financial transaction above some designated value
3. Comply with the requirements of the Sarbanes-Oxley Act (Sox) of 2002
4. None of the above

5. The risk management function in a company must cover:

1. Only a single unit
2. Top management only
3. All units and levels
4. Only external events