Components of COSO Enterprise Risk Management (ERM):
* The COSO ERM framework emphasizes the integration of risk management with strategy and performance, comprising the following components:
* Governance and culture.
* Strategy and objective-setting.
* Performance.
* Review and revision.
* Information, communication, and reporting.
Why D is Correct:
* Governance and culture set the foundation for an organization's risk management practices by establishing oversight, ethical values, and the operating structure.
Why Other Options are Incorrect:
* A (Independent monitoring):Monitoring is part of internal control, not specifically ERM.
* B (Operating environment):Not a COSO ERM component.
* C (Risk tolerance):A concept within ERM but not a standalone component.