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SCR Exam - Question 26


Senior management at a global manufacturer of commercial flooring explores strategies to reduce capital costs and improve company valuation, resulting in a comprehensive sustainability strategy. Management determines all future flooring products will be carbon neutral across their full product life cycle. The risk team is tasked with updating the company ERM framework in accordance with COSO guidelines to include ESG and climate-related risks. The team reviews and updates each of the ERM components.

What action should the team recommend the company take as part of the communication component of the ERM framework?

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Correct Answer: D

For the communication component of the Enterprise Risk Management (ERM) framework, the company should establish processes to convey climate and sustainability risk exposure. This ensures that the necessary stakeholders, both internal and external, are informed about the risks and the strategies the company adopts to manage them. Effective communication is crucial for transparency, accountability, and alignment with sustainability goals.

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Anil_SUPER_STAROption: D
Sep 30, 2023

Correct Answer is D COSO Point 19 relates to Communication Risk information