According to the Hierarchy of Risk Management, the Least Preferred

question 17

Multiple Choice

According to the hierarchy of risk management, the least preferred option for dealing with risk is to:

• A) eliminate the risk.
• B) prevent the risk from occurring.
• C) reduce the consequences of the risk should it occur.
• D) reduce the likelihood of the risk occurring.
• E) None of these responses are correct.

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Definitions:

Liquidity Ratios

Financial metrics used to evaluate a company's ability to meet its short-term debt obligations by measuring how easily it can convert assets to cash.

Dividend Payments

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Comparative Data

Information that is compared across different time periods, companies, or other variables to analyze performance or condition.

Investment Classification

The categorization of investments based on their characteristics, risk, and objectives.