Question

A newly appointed chief risk officer at a mid-sized insurer discovers that risk activities are performed inconsistently across departments, with each unit using its own spreadsheets, terminology, and rating scales. The board asks the CRO to recommend the single most important first step to establish effective enterprise risk management. Which recommendation best addresses the board's request?

Accepted Answer

Adopt a common enterprise risk management framework that provides consistent processes, terminology, and criteria across the organization

Answer

Purchase an integrated GRC software platform to automate all risk data collection immediately

Answer

Require each department to hire a dedicated risk analyst to improve local risk reporting quality

Answer

Instruct internal audit to test the accuracy of every department's existing risk spreadsheets