CRISC Certified in Risk and Information Systems ControlGovernanceEasy
A global financial institution is evaluating its enterprise risk management (ERM) framework. The board of directors has expressed concern that risk management activities are perceived as barriers rather than enablers of business objectives. Which of the following adjustments to the ERM framework would BEST address this concern?
- AMandate additional risk management training for all employees.
- BImplement more stringent control measures across all business units.
- CIntegrate risk management into strategic planning and decision-making processes.
- DIncrease the frequency of risk committee meetings to enhance oversight.
Show answer & explanationAnswer & explanation
Correct answer: C. Integrate risk management into strategic planning and decision-making processes.
Integrating risk management into strategic planning aligns it with business objectives, demonstrating its value as an enabler. This shift helps overcome the perception of risk management as a barrier.
Why the other options are wrong
- A. Mandating training is important for awareness but doesn't fundamentally change how risk management is perceived in relation to strategic goals.
- B. Implementing more stringent controls might reinforce the perception of risk as a barrier, not an enabler.
- D. Increasing meeting frequency enhances oversight but doesn't inherently shift the perception of risk as an enabler.
Risk Integration
The process of embedding risk management activities and considerations directly into an organization's strategic planning, decision-making, and operational processes.
- Moves risk from a siloed function to a core business enabler.
- Ensures risk is considered proactively in all major initiatives.
- Helps align risk management with organizational objectives.
Memory trick: Strategic integration makes risk a business partner, not just a gatekeeper.