WGU CHAPTER THREE ENTERPRISE RISK
MANAGEMENT EXAM 92 QUESTIONS WITH
VERIFIED ANSWERS 2025/2026
____ is a structured, consistent and continuous process applied across an entire
organization that fosters better understand and ability to address their material
risks relative to strategic objectives. - CORRECT ANSWER Enterprise risk
management
A properly executed ERM program can benefit all ____. - CORRECT ANSWER
Stakeholders
ERM is a ____ to risk management. - CORRECT ANSWER Top-down approach
Shareholders don't like ____. - CORRECT ANSWER Variability
____ are more likely to interact with a firm if they know it will exist in the future. -
CORRECT ANSWER Clients
____ involved in ERM include, the BOD and senior management. - CORRECT
ANSWER Internal parties
____ involved in ERM include regulators, rating agencies and lenders/insurers. -
CORRECT ANSWER External parties
, ____ involved in ERM include shareholders, employees, financial counterparties
and customers/clients. - CORRECT ANSWER Indirect parties
All ERM frameworks have ____. - CORRECT ANSWER Similar steps
The first step of ERM is the ____ stage, where the context and external
environment are identified. - CORRECT ANSWER Planning
The second step of ERM is the ____ stage, where risks are prioritized and ranked. -
CORRECT ANSWER Identification and assessment
The third step of ERM is the ____ stage, where various options are reviewed to
reconcile risks. At this point we should have a set of intended outcomes. -
CORRECT ANSWER Treatment
The fourth step of ERM is the ____ stage. - CORRECT ANSWER Implementation
The fifth step of the ERM is the ___ Stage. - CORRECT ANSWER Monitoring
The first things cut in an organization are ___ and ERM. - CORRECT ANSWER R&D
Sometimes it is ____ to tell when ERM is working. But it is easy to tell when it is
not working. - CORRECT ANSWER Hard
MANAGEMENT EXAM 92 QUESTIONS WITH
VERIFIED ANSWERS 2025/2026
____ is a structured, consistent and continuous process applied across an entire
organization that fosters better understand and ability to address their material
risks relative to strategic objectives. - CORRECT ANSWER Enterprise risk
management
A properly executed ERM program can benefit all ____. - CORRECT ANSWER
Stakeholders
ERM is a ____ to risk management. - CORRECT ANSWER Top-down approach
Shareholders don't like ____. - CORRECT ANSWER Variability
____ are more likely to interact with a firm if they know it will exist in the future. -
CORRECT ANSWER Clients
____ involved in ERM include, the BOD and senior management. - CORRECT
ANSWER Internal parties
____ involved in ERM include regulators, rating agencies and lenders/insurers. -
CORRECT ANSWER External parties
, ____ involved in ERM include shareholders, employees, financial counterparties
and customers/clients. - CORRECT ANSWER Indirect parties
All ERM frameworks have ____. - CORRECT ANSWER Similar steps
The first step of ERM is the ____ stage, where the context and external
environment are identified. - CORRECT ANSWER Planning
The second step of ERM is the ____ stage, where risks are prioritized and ranked. -
CORRECT ANSWER Identification and assessment
The third step of ERM is the ____ stage, where various options are reviewed to
reconcile risks. At this point we should have a set of intended outcomes. -
CORRECT ANSWER Treatment
The fourth step of ERM is the ____ stage. - CORRECT ANSWER Implementation
The fifth step of the ERM is the ___ Stage. - CORRECT ANSWER Monitoring
The first things cut in an organization are ___ and ERM. - CORRECT ANSWER R&D
Sometimes it is ____ to tell when ERM is working. But it is easy to tell when it is
not working. - CORRECT ANSWER Hard
