Question

X Company is preparing its IPO prospectus and is informed by its attorneys that the company needs to discuss the board's role in risk oversight ad enterprise risk management. This discuss would be best placed within the section of the prospectus known as:________.

Answer 1

Answer: This discuss would be best placed within the section of the prospectus known as the management section.

Explanation:

The management section in the prospectus has the information regarding the management team biography and the key people in the company. The board's role in risk oversight is through developing policies to build strategies that are consistent with risk ability of the X Company.

Enterprise risk management is a strategy that helps is preventing the company from any hazards. ERM has its effect on the operations of the company so the Board plays a major role in managing ERM.