Risk Financing Is the Action of Making Funds Available to Cover

question 101

True/False

Risk financing is the action of making funds available to cover losses that could not be eliminated by risk control.

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a company.

Corporate Level

Corporate level refers to the highest layer of strategic decision-making in an organization that affects the entire company.

Functional Level

The operational level in an organization where specific, routine tasks and procedures are carried out, essential to the execution of organizational strategies.

Strategy

A plan of action or policy designed to achieve a major or overall aim.