Which of the Following Is NOT an Ethics Risk Management

question 6

Multiple Choice

Which of the following is NOT an ethics risk management principle?

• A) Normal definitions of risk are too narrow for stakeholder accountability.
• B) Assign responsibility; develop follow-up processes and board review.
• C) Discovery and remediation are essential.
• D) The code of ethics must be reviewed by independent parties.
• E) An ethics risk exists when expectations of stakeholders may not be met.

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Definitions:

Relevant Range

The range of the activity index over which the company expects to operate during the year.

Total Costs

The aggregate amount of all expenses incurred in the production of goods or services, including fixed and variable costs.

Linear

A mathematical relationship or function that can be graphically represented by a straight line, characterized by consistent changes.

Flexible Budget

A flexible budget designed to adapt in line with changes in the amount of activity or volume.