Enterprise Risk Management (ERM) Practice Exam
Enterprise Risk Management (ERM) Practice Exam
About Enterprise Risk Management (ERM) Exam
The Enterprise Risk Management (ERM) Exam assesses a professional’s ability to identify, assess, respond to, and monitor strategic, financial, operational, and compliance risks across the enterprise. ERM provides a structured framework that integrates risk considerations into decision-making processes, allowing businesses to navigate uncertainty while achieving their objectives. This exam is ideal for professionals involved in corporate governance, internal audit, compliance, or strategic planning. It focuses on frameworks like COSO ERM and ISO 31000, and emphasizes both qualitative and quantitative risk evaluation techniques. Candidates gain the skills needed to build risk-aware cultures and strengthen organizational resilience.
Who should take the Exam?
This exam is ideal for:
- Risk managers and compliance officers
- Internal auditors and controllers
- Governance, risk, and compliance (GRC) professionals
- Finance and strategic planning personnel
- Board members and senior executives
- Consultants specializing in risk advisory
Skills Required
- Understanding of enterprise-wide risk frameworks
- Analytical thinking and decision-making under uncertainty
- Familiarity with regulatory compliance and reporting standards
- Knowledge of financial, operational, and strategic risk categories
- Ability to embed risk into corporate strategy and processes
Knowledge Gained
- Implementing ERM frameworks such as COSO ERM and ISO 31000
- Identifying and prioritizing risks using structured tools
- Establishing effective risk appetite and tolerance levels
- Integrating risk management into business operations
- Developing and reporting enterprise risk dashboards
Course Outline
The Enterprise Risk Management (ERM) Exam covers the following topics -
Domain 1 – Fundamentals of Enterprise Risk Management
- Definition, purpose, and evolution of ERM
- Benefits of an integrated risk approach
- Key risk terms and classifications
Domain 2 – Risk Frameworks and Standards
- COSO ERM components and principles
- Overview of ISO 31000 and its risk lifecycle
- Comparing ERM models and applicability
Domain 3 – Risk Identification and Assessment
- Techniques for identifying strategic, operational, and financial risks
- Risk registers, risk maps, and heat maps
- Qualitative and quantitative risk assessment tools
Domain 4 – Risk Response and Mitigation
- Risk response strategies: avoid, reduce, transfer, accept
- Controls design and implementation
- Monitoring effectiveness of mitigation plans
Domain 5 – Risk Monitoring and Reporting
- Key Risk Indicators (KRIs) and performance metrics
- Risk dashboards and board-level reporting
- Continuous improvement and feedback loops
Domain 6 – Governance, Culture, and Ethics
- Role of leadership in risk-aware decision-making
- Embedding risk culture throughout the organization
- Ethical considerations in risk practices
Domain 7 – Integration of ERM with Strategy and Performance
- Aligning ERM with strategic objectives and KPIs
- Scenario planning and stress testing
- ERM's contribution to long-term sustainability
Domain 8 – Technology and Emerging Risks
- Using digital tools for risk analytics and modeling
- Managing cybersecurity and data privacy risks
- Anticipating future risks: ESG, geopolitical, supply chain, AI
