Chapter 6 Homework Exercises (graded) Exercise 1 Match up the numbered ERM decision-making goals on the left with the lettered descriptions on the right and record your answers in the table below. There is not necessarily a one-to-one correspondence. 1. Risk-priority decision making A. Is synonymous with routine business decision making 2. Return-priority decision making B. Requires two steps: (1) recalculating risk and return metrics; and (2) evaluating the risk-return tradeoff. C. The implementation of this type of decision can result in changes in the baseline ERM projection and in the key risks and their scenarios. D. An example is increasing the level of insurance coverage. E. An example is reducing the level of insurance coverage. Number Letters That Correspond 1 2 47