All of the Following Statements About the Administration of a Risk

question 53

Multiple Choice

All of the following statements about the administration of a risk management program are true EXCEPT

• A)The risk manager is an important part of a firm's management team.
• B)A risk management policy statement can be used to educate top executives about the risk management process.
• C)If a risk management program is properly designed,periodic review of the program is unnecessary.
• D)In order to properly identify loss exposures,the risk manager needs the cooperation of other departments.

---

Definitions:

Negative

In general terms, something that represents a deficit, lack, or detrimental aspect, often used in contexts like finance, emotions, or charges.

Inferior Good

A good for which demand decreases as consumer income rises, unlike normal goods, for which demand increases as consumer income rises.

Cross Elasticity of Demand

A measure of how the quantity demanded of one good responds to a change in the price of another good.

Soft Drinks

Non-alcoholic beverages that are typically carbonated and contain various flavorings and sweeteners.