For each scenario below, select from the option list provided the related component of the COSO Enterprise Risk Management framework. Each choice may be used once, more than once, or not at all.

Scenario

ERM component

$1.$ To protect against the risk of loss from tornadoes, ABC Corporation purchased insurance.

$2.$ Mr$.$ Walter, an employee of ABC Corporation, reports fraud through the company's whistleblower hotline.

$3.$ Performance aligns with tolerance, but management identifies areas for improvement.

$4.$ ABC Corporation develops a risk inventory with categories of similar risk.

$5.$ Management determines that sales revenue will decrease by $20\%$ and market share will decrease by $10\%$ if new competitors enter the market.

$6.$ At the annual meeting, the CEO states the company's desire to reduce costs by $10\%$ and increase its customer base by $8\%$ for next year.

$7.$ ABC Corporation is a leading artificial intelligence $($AI$)$ company. However, senior management realizes that, in recent years, more and more competitive AI companies have entered the market as production costs significantly decrease. This trend is expected to continue.

$8.$ Year$-$end bonuses are based on ABC Corporation's overall performance and how well each employee's conduct reflects the company's core values.

$9.$ After each purchase, every customer of ABC Corporation will have the opportunity to submit feedback on product quality and improper charges.

$10.$ ABC Corporation has a subsidiary that is $100\%$ owned. But its management structure is organized as one entity.