Risk

1. Aligning risk appetite and strategy.Management considers the entityfs risk appetite in evaluating strategic alternatives, setting related objectives, and developing mechanisms to manage related risks.

2. Enhancing risk response decisions.Enterprise risk management provides the rigor to identify and select among alternative risk responses.risk avoidance, reduction, sharing, and acceptance.

3. Reducing operational surprises and losses.Entities gain enhanced capability to identify potential events and establish responses, reducing surprises and associated costs or losses.