As a Form of Risk Management, You Would Know When

question 45

Multiple Choice

As a form of risk management, you would know when to seek legal advice if you believed your business was about to be involved in a tort action. You know that prior to the meeting you have tried to minimize the risk. Which of the following is not a risk management tool?

• A) Assessing the possible legal risks after an action has been commenced against you
• B) Understanding what questions need to be asked of the lawyer
• C) Anticipating and assessing possible legal risks involved in your business actions
• D) Understanding the statutes involved in your business and jurisdiction

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Definitions:

Deming

Refers to W. Edwards Deming, an American engineer, statistician, professor, author, lecturer, and management consultant known for his work in quality management.

Anticipation

The act of expecting or foreseeing something, often involves preparing for future events or changes.

Prevention

The action of stopping something from happening or arising, especially in terms of health and disease.

Proaction

The approach of taking strategic, anticipatory actions to create or control future developments, rather than merely reacting to events as they happen.