Lesson: Enterprise Risk Management - Practice Questions

In this lesson, Nick Palazzolo, CPA, dives into the intricacies of Enterprise Risk Management (ERM) using a variety of practice questions to help clarify the concepts and strategies businesses use to handle risks. He succinctly explains the four main approaches to risk—reduction, sharing, avoidance, and acceptance—by applying them to real-world scenarios such as hurricane risks in different regions. Nick also highlights the importance of memorizing key phrases and concepts related to the COSO ERM framework, particularly the roles of governance, culture, and the fiduciary responsibilities of the board of directors. Through analyzing multiple-choice questions, he emphasizes the COSO ERM components and reinforces the significance of understanding risk assessment and management's role within a company, leading to a clear understanding of how businesses strategically manage various risk profiles.