potential impact. The result of the calculation is the ansition is evuti a risk and multiples the probability 13. For what primary reason could enterprise risk management (ERM) systems fail? 9aded Answer: A. ERM decisions are always ignored across a business when a top-down approach is Page 17 tused. B. Financial constraints could compromise the implementation of ERM systems. C. Management can never override ERM decisions. D. The use of ERM systems do not give the required assistance to risk managers. 14. As a direct result of recent disasters in the oil drilling and exploration sector, for companies in this sector there has been an increase in Answer: A. business continuity planning and the use of lower policy deductibles. B coinsurance and silo-based risk management. C. governance, risk and control and self-insurance. D. new regulations and safety controls. 15. Where an insurance organisation has failed to keep up with new legislation governing its day-to-day activities, it primarily increases its exposure to Answer: A. compliance and regulatory risk. B insurance and regulatory risk. . C. liquidity and business risk. D. market and strategic risk. potential impact. The result of the calculation is the ansition is evuti a risk and multiples the probability 13. For what primary reason could enterprise risk management (ERM) systems fail? 9aded Answer: A. ERM decisions are always ignored across a business when a top-down approach is Page 17 tused. B. Financial constraints could compromise the implementation of ERM systems. C. Management can never override ERM decisions. D. The use of ERM systems do not give the required assistance to risk managers. 14. As a direct result of recent disasters in the oil drilling and exploration sector, for companies in this sector there has been an increase in Answer: A. business continuity planning and the use of lower policy deductibles. B coinsurance and silo-based risk management. C. governance, risk and control and self-insurance. D. new regulations and safety controls. 15. Where an insurance organisation has failed to keep up with new legislation governing its day-to-day activities, it primarily increases its exposure to Answer: A. compliance and regulatory risk. B insurance and regulatory risk. . C. liquidity and business risk. D. market and strategic risk