The Initial Step in the Risk Management Process Is to

question 99

Multiple Choice

The initial step in the risk management process is to

• A) determine the level of acceptable risk.
• B) assess the risk potential.
• C) identify the risks.
• D) set aside funds for managing the risks.
• E) appoint a risk manager.

Describe the characteristics of open and closed systems in organizations.

Apply the concepts of scientific management and its contribution to modern management practices.

Analyze the importance of viewing organizations as open systems.

Understand the historical development and principles of the human relations movement.

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Definitions:

Administrative Expenses

Costs related to the general administration of a business, such as salaries of office staff, rent, and utilities.

Cash Basis

A method in accounting where revenues and expenses are recorded only when cash is received or paid out, respectively.

Statement of Cash Flows

A financial statement that summarizes a company's cash inflows and outflows over a specific period.

Sales Adjusted

A correction made to sales figures to account for various factors such as returns, allowances, or discounts.