Components of COSO Enterprise Risk Management (ERM):
The COSO ERM framework emphasizes the integration of risk management with strategy and performance, comprising the following components:
Governance and culture.
Strategy and objective-setting.
Performance.
Review and revision.
Information, communication, and reporting.
Why D is Correct:
Governance and culture set the foundation for an organization’s risk management practices by establishing oversight, ethical values, and the operating structure.
Why Other Options are Incorrect:
A (Independent monitoring):Monitoring is part of internal control, not specifically ERM.
B (Operating environment):Not a COSO ERM component.
C (Risk tolerance):A concept within ERM but not a standalone component.
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