[redox1100]

Becker students, quick Q on b1 on the PHRASED and PHRASED C mnemonic :

A. I/C

1. Philosophy and operating style of management

2. Human resources

3. Reporting (financial) competencies***************

4. Authority and responsibility

5. Structure (organizational)

6. Ethical values and integrity

7. Directors (Board of)

B. ERM

1. Philosophy and operating style of management

2. Human resources

3. Risk appetite***************

4. Authority and responsibility

5. Structure (organizational)

6. Ethical values and integrity

7. Directors (Board of)

8. Commitment to competence

Question: So the “R” is different for both of the mnemonics (Reporting (financial) competencies vs Risk appetite)? Although this difference is identified on my note cards, i specifically remember Peter saying the only difference for ERM is that you add the C (commitment to competence)?

Thanks in advance

[Anonymous]

I guess it is part of internal environment. Olinto didn't say anything about this difference.

Example: (I made this up): If a question asks when does a company define its risk appetite would it be Internal Environment? Then, the within objective setting it would be matching the risk appeite to the risk tolerance?

Prior to noticing this difference I was under the impression risk appetie and risk tolerance were both apart of objective setting.

[Author]

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