Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What can be done when aiming to resolve risks based on an enterprise risk management process?

1. Produce an action plan

2. Find ways to eliminate redundancy

3. Review how you can avoid risks

4. All of the above

The correct answer is: All of the above

When aiming to resolve risks within an enterprise risk management process, producing an action plan, finding ways to eliminate redundancy, and reviewing how to avoid risks are all integral components. Each of these actions plays a vital role in a comprehensive risk management strategy. Producing an action plan is crucial as it lays out the specific steps and measures that will be taken to address identified risks. This plan helps to ensure that all stakeholders understand their roles and responsibilities, timelines, and the resources required to mitigate risks effectively. Finding ways to eliminate redundancy can streamline processes and reduce the likelihood of risks emerging from overlapping duties or conflicting objectives. Efficiency in operations can help organizations be more agile and responsive to potential threats. Reviewing how to avoid risks is fundamental to proactive risk management. By identifying potential risks early on and implementing strategies to avoid them, organizations can significantly reduce their exposure to negative outcomes. Incorporating all these approaches demonstrates a thorough understanding of managing risks and ensures that an organization is well-prepared to handle challenges effectively.