Crisis Management

question 8

Multiple Choice

Crisis management:

• A)predicts when conditions might give rise to a contingency plan
• B)is the same as contingency planning
• C)is the same as scenario planning
• D)occurs when unanticipated conditions arise
• E)involves generating several 'what if' scenarios

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Definitions:

Contractual Obligation

A duty or commitment that is legally enforceable due to a contract agreement.

Hedging

A financial strategy used to reduce or manage risk associated with price movements of assets by taking an opposite position in a related security.

Hedging Relationship

A risk management strategy where two or more financial instruments are used together to offset potential losses in investments.

Hedged Item

A recognized asset or liability, unrecognized firm commitment, or highly probable forecast transaction in a hedging relationship.