While considering entity-based risks, which dimension of the COSO ERM framework is being
referred?
A.
Organizational levels
B.
Risk components
C.
Strategic objectives
D.
Risk objectives
Explanation:
The organizational levels of the COSO ERM framework describe the subsidiary, business unit,
division, and entity-levels of aspects of risk solutions.
Answer C is incorrect. Strategic objectives includes strategic, operational, reporting, and
compliance risks; and not entity-based risks.
Answer B is incorrect. Risk components includes Internal Environment, Objectives settings, Event
identification, Risk assessment,Risk response, Control activities, Information and communication,
and monitoring.
Answer D is incorrect. This is not valid answer.