WGU D373 ENTERPRISE RISK MANAGEMENT EXAM
127 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
a portfolio view examines risk at the entity level and considers risk at the more
granular level of a business function, process or event
the more granular its identification, the more specific the business can be in
addressing it - CORRECT ANSWER risk profile
the likelihood of risks occurring and their potential impact on the company
or the time it takes to recover from events - CORRECT ANSWER risk severity
the amount of risk a company is willing to take on at a particular time - CORRECT
ANSWER Risk Appetite
how fast a risk may affect an organization - CORRECT ANSWER risk velocity
accept (take on risk)
mitigate (takes steps in reducing risk)
transfer (insurance, contracts)
,avoid (do not take risk on) - CORRECT ANSWER how can you deal with risk?
the effect of uncertainty on strategic objectives
positive outcomes vs negative outcomes - CORRECT ANSWER risk
improves decision making in ...
a. governance
b. strategy
c. objective setting
d. day to day operations
helps enhance performance by more closely linking strategy and business
objectives to risk
provides an entity with a clear path to creating, preserving, and realizing value -
CORRECT ANSWER what are the benefits of integrating enterprise risk
management practices throughout an organization?
1. increase the range of opportunities
2. increase positive outcomes and advantage while reducing negative surprises
, 3. identify and manage entity wide risks
4. reduce performance variability
5. improve resource deployment - CORRECT ANSWER more benefits of ERM (5)
governance
performance measurement (KPI)
internal controls - CORRECT ANSWER how is ERM linked to business?
it influences its development (but does not create the strategy) - CORRECT
ANSWER how does ERM affect strategy?
1) risk identification
2) risk analysis
3) risk prioritization
4) risk treatment - CORRECT ANSWER steps in risk assessment
traditional risk management: - operating in silos (separate departments)
- risk averse
ERM: holistic
127 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
a portfolio view examines risk at the entity level and considers risk at the more
granular level of a business function, process or event
the more granular its identification, the more specific the business can be in
addressing it - CORRECT ANSWER risk profile
the likelihood of risks occurring and their potential impact on the company
or the time it takes to recover from events - CORRECT ANSWER risk severity
the amount of risk a company is willing to take on at a particular time - CORRECT
ANSWER Risk Appetite
how fast a risk may affect an organization - CORRECT ANSWER risk velocity
accept (take on risk)
mitigate (takes steps in reducing risk)
transfer (insurance, contracts)
,avoid (do not take risk on) - CORRECT ANSWER how can you deal with risk?
the effect of uncertainty on strategic objectives
positive outcomes vs negative outcomes - CORRECT ANSWER risk
improves decision making in ...
a. governance
b. strategy
c. objective setting
d. day to day operations
helps enhance performance by more closely linking strategy and business
objectives to risk
provides an entity with a clear path to creating, preserving, and realizing value -
CORRECT ANSWER what are the benefits of integrating enterprise risk
management practices throughout an organization?
1. increase the range of opportunities
2. increase positive outcomes and advantage while reducing negative surprises
, 3. identify and manage entity wide risks
4. reduce performance variability
5. improve resource deployment - CORRECT ANSWER more benefits of ERM (5)
governance
performance measurement (KPI)
internal controls - CORRECT ANSWER how is ERM linked to business?
it influences its development (but does not create the strategy) - CORRECT
ANSWER how does ERM affect strategy?
1) risk identification
2) risk analysis
3) risk prioritization
4) risk treatment - CORRECT ANSWER steps in risk assessment
traditional risk management: - operating in silos (separate departments)
- risk averse
ERM: holistic
