Which framework term describes the alignment of risk management with business strategy and embedding a risk management culture into operations?

Which framework term describes the alignment of risk management with business strategy and embedding a risk management culture into operations?

• A. Enterprise risk management
• B. Corporate governance
• C. Strategic planning
• D. Compliance program

Answer: (A)

This describes enterprise risk management. It emphasizes an integrated, organization-wide approach to identifying, assessing, and managing risks in a way that aligns with the business strategy and embeds risk thinking and risk-aware behavior into everyday operations. In practice, ERM ties risk governance and appetite to strategic objectives and ensures risk considerations are part of decision-making, planning, and performance management. By contrast, corporate governance focuses on oversight and accountability structures; strategic planning concentrates on setting objectives and how to achieve them; and a compliance program centers on meeting rules and regulations.

This describes enterprise risk management. It emphasizes an integrated, organization-wide approach to identifying, assessing, and managing risks in a way that aligns with the business strategy and embeds risk thinking and risk-aware behavior into everyday operations. In practice, ERM ties risk governance and appetite to strategic objectives and ensures risk considerations are part of decision-making, planning, and performance management. By contrast, corporate governance focuses on oversight and accountability structures; strategic planning concentrates on setting objectives and how to achieve them; and a compliance program centers on meeting rules and regulations.