The First Step for Management in the Risk Assessment Process

question 22

Multiple Choice

The first step for management in the risk assessment process is to identify factors that may increase risk,for example failure to meet prior objectives.Then,management will

• A)assess the likelihood of the risk occurring.
• B)make sure that procedures are developed to eliminate the risk.
• C)estimate the significance of that risk.
• D)develop specific actions to reduce the risk to an acceptable level.

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Definitions:

Raw Materials

Basic substances in their natural, modified, or unprocessed states used in the production or manufacturing of goods.

Operating Expense

The costs associated with the day-to-day operations of a business, excluding the costs of goods sold.

Manufacturing Process

Involves the steps through which raw materials are transformed into a final product, applying various techniques and methods.

Income Statement

A financial report that shows the company's revenues, expenses, and profits or losses over a specific period of time.