Exercise 3 Circle the situation(s) below that represent the occurrence of at least one risk event, where risk is defined in an ERM context. A. An event occurs, which was on the company's emerging risk list and was not quantified in the ERM model , and results in an unexpected expense of $2 million. B. An unexpected event occurs that results in massive negative media coverage of the company's CEO but all future cash flows still exactly match the baseline strategic plan projection. C. An event occurs that results in $4 million in profits, where the baseline strategic plan expected this event to occur but had expected it to result in only $3.5 million in profits. D. An event occurs that results in higher revenue than projected in the company's baseline strategic plan. Exercise 4 Circle the statement(s) below that are true. A. Regardless of company size or complexity of organization structure, the number of key risks should be in the neighborhood of 20 to 30. B. Failure to define a risk by its originating source results in underestimating the quantitative impact of the risk C. Rather than using templates, the best practice method for conducting the qualitative risk assessment survey is through interviews. D. In the case where a dispersion analysis is need, email surveys can provide useful data and insights