Which Action Is Part of the Second Step of a Risk

question 71

Multiple Choice

Which action is part of the second step of a risk management program analysis?

• A) Classification of risks
• B) Deciding on an action
• C) Determining risk control methods
• D) Systematic risk analysis

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Definitions:

Due Diligence Defense

A legal strategy where the defendant shows that reasonable actions were taken to avoid causing harm, used as a defense in civil litigation and regulatory compliance.

Securities Act of 1933

A federal law enacted to ensure more transparency in financial statements so investors can make informed decisions about investments, and to establish laws against misrepresentation and fraudulent activities in the securities markets.

Audited Financial Statements

Financial records that have been reviewed and certified by a certified public accountant (CPA) for accuracy and adherence to standard accounting practices.

Financial Statement Auditing

The examination and evaluation of a company's financial statements by an independent auditor to ensure accuracy, compliance with accounting standards, and fairness in financial reporting.