List and define the eight interrelated ERM components

What will be an ideal response?

Answer:
1. Internal Environment. The internal environment of an enterprise involves the risk management philosophy of the enterprise, including the tone set by top management. Risk resilience, risk appetite, risk tolerance, integrity, and ethical values also affect the internal environment.
2. Objective Setting. ERM ensures that the enterprise has a process for setting objectives that are consistent with the entity's mission and risk appetite.
3. Event Identification. Events, both internal and external, that affect an enterprise's ability
to attain its objectives, are identified. In addition to distinguishing between internal and external events, events can be further classified as risks and opportunities. Identified opportunities can subsequently influence the ERM objective setting component.
4. Risk Assessment. Risks are assessed by analyzing the risk with consideration for the probability of occurrence and impact. The risk analysis provides a basis for determining how the risk should be managed.
5. Risk Response. The enterprise's response to the risk is selected. The enterprise may choose to avoid, accept, reduce, or share the risk. The actions to respond to the risk are specified, consistent with the entity's risk tolerance and appetite.
6. Control Activities. Control activities are comprised of policies and procedures established and implemented to ensure risk responses are effective.
7. Information and Communication. Relevant information is captured and communicated effectively throughout the organization to appropriate individuals in a timely manner. Timely communication of relevant information is essential in implementing risk responses.
8. Monitoring. An enterprise's risk management is monitored with evaluation and feedback that permits modifications as needed.