Select from the option list provided the word or phrase that correctly completes each statement related to the strategy and objective$-$setting components of enterprise risk management $($ERM$)$ below.

A

B

$1$

Statement

Missing Item

$2$

Integrating ERM and strategy setting assists the organization in understanding the $\_\_\_\_\_$ related to strategy and business objectives.

$3$

Tolerances are established to evaluate $\_\_\_\_\_.$

$4$

PESTLE analysis applies to the factors in the organization's $\_\_\_\_\_.$

$5$

The risk appetite approved by $\_\_\_\_\_.$

$6$

The business context of a small corporation that has only domestic customers is best described as $\_\_\_\_\_$ if entry barriers in its industry are low.

Terms to choose from:

Q$2$: Target residual risk; risk profile; risk appetite; risk capacity

Q$3$: Achievement of strategies; achievement of the corporate mission; achievement of objectives; consistency with core values

Q$4$: Internal environment; external environment; business contexts; political and ecological environment only

Q$5$: Management should reflect management's preferences; the board should be communicated by management; shareholders should be communicated by the board; management should reflect A quantitative assessment

Q$6$: Static; dynamic; complex; unpredictable