Peter Weatherford and Paul Washington are discussing the characteristics of an effective enterprise risk management system for their firm, Supra Portfolio Managers. Weatherford states that Supra should have a committee in place to respond to violations of risk management guidelines. Washington adds that each asset Supra holds must be investigated thoroughly in isolation so that management can better understand the asset’s risk andreturn characteristics. Which of the following regarding Weatherford’s and Washington’sstatements is CORRECT? A) Weatherford is incorrect; Washington is incorrect. B) Weatherford is correct; Washington is incorrect. C) Weatherford is correct; Washington is correct.