Which term describes the set of activities and framework for directing and controlling risk across the organization?

Which term describes the set of activities and framework for directing and controlling risk across the organization?

• A. Asset
• B. Risk governance
• C. Stakeholder
• D. Risk universe

Answer: (B)

Risk governance is the set of activities and framework for directing and controlling risk across the organization. It creates the structure, policies, roles, and decision-making processes that ensure risk management is consistent, aligned with strategy and risk appetite, and subject to oversight and accountability. It answers who is responsible for risk decisions, how risk information is reported, and how risk is prioritized and monitored across all areas. An asset is anything of value the organization seeks to protect, a stakeholder is a party with an interest or influence, and a risk universe is the catalog of risks considered; none of these alone capture the organization-wide coordination and control of risk. So risk governance is the umbrella that coordinates and directs risk management across the organization.

Risk governance is the set of activities and framework for directing and controlling risk across the organization. It creates the structure, policies, roles, and decision-making processes that ensure risk management is consistent, aligned with strategy and risk appetite, and subject to oversight and accountability. It answers who is responsible for risk decisions, how risk information is reported, and how risk is prioritized and monitored across all areas. An asset is anything of value the organization seeks to protect, a stakeholder is a party with an interest or influence, and a risk universe is the catalog of risks considered; none of these alone capture the organization-wide coordination and control of risk. So risk governance is the umbrella that coordinates and directs risk management across the organization.