Which term describes the set of activities and framework for directing and controlling risk across the organization?

Which term describes the set of activities and framework for directing and controlling risk across the organization?

• A. Asset
• B. Risk governance
• C. Stakeholder
• D. Risk universe

Answer: (B)

Risk governance is the framework and set of activities that steer how risk is approached and controlled across the organization. It includes establishing policy, defining roles and responsibilities, setting risk appetite, ensuring alignment with objectives, and providing ongoing oversight and assurance through monitoring and reporting. This umbrella structure ensures risk-related decisions are made consistently and escalated appropriately, with information flowing to senior management and the board.

An asset is something of value to protect; a stakeholder is any party with an interest in the organization; a risk universe is the catalog of risk categories used for assessment. None of these describe the overarching framework for directing and controlling risk across the whole organization the way risk governance does.