What is the main goal of enterprise risk management?

Prepare for the ACFE Certified Fraud Examiner CFE Exam. Study with multiple-choice questions, each with hints and explanations. Boost your fraud prevention skills and excel in your exam!

The primary goal of enterprise risk management (ERM) is to identify potential events that may impact an organization and to manage risk within the organization's risk appetite. This holistic approach enables organizations to recognize both the risks and opportunities they face, allowing for proactive decision-making and strategic planning. By understanding and managing risks, organizations can not only protect their assets and reputation but also enhance their ability to achieve objectives and seize opportunities for growth.

In contrast, the other choices focus on narrower objectives that do not encompass the comprehensive nature of ERM. Increasing marketing outreach, while important for a business's growth, does not address the identification and management of risks. Ensuring all employees are trained is vital for operational efficiency but does not specifically relate to risk management frameworks. Providing annual reports to stakeholders is a part of corporate governance and transparency but does not directly involve the proactive identification and management of risks that ERM seeks to accomplish. Thus, option C accurately reflects the essence and comprehensive purpose of enterprise risk management.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy