ERM framework

Question 1

Major four steps in ERM

Answer 1

1. Risk identification
2. Risk quantification
3. Risk decision making
4. Risk messaging

Question 2

Reasons risk limits are used

Answer 2

1. Diversification 2. Risk-return management 3. Managing ERM 4. Habit

Question 3

Risk decision making

Answer 3

1. Defining risk appetite
2. Managing ERM within appetite
3. Strategic planning and other business decision making