Question

A multinational manufacturer has business units in three regions, each of which has developed its own approach to assessing operational risk. The chief risk officer wants to ensure that risk assessments produce comparable results across all units so that risks can be aggregated meaningfully at the enterprise level. Which action would BEST achieve this objective?

Accepted Answer

Establish an enterprise-wide risk assessment standard defining common criteria, scales, and methodology for all business units

Answer

Require each regional business unit to submit its risk register to the CRO for quarterly review

Answer

Increase the frequency of risk assessments performed by each business unit

Answer

Allow each region to retain its own methodology but translate results into a shared reporting template