Which of the Following Components Influences the Risk Consciousness of an Organization's

question 322

Multiple Choice

Which of the following components influences the risk consciousness of an organization's people and is the basis for all other components of enterprise risk management?

• A) Objective setting.
• B) Information and Communication.
• C) Risk Assessment.
• D) Internal Environment.

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Definitions:

Administrative Expenses

Operating expenses related to the day-to-day operations of a business that do not directly relate to the production of goods or services, such as salaries of office staff and rent.

Variable Direct Materials Cost

The costs of raw materials that vary directly with the level of production output.

Variable Direct Labor Cost

Costs associated with labor that vary directly with the level of production output.

Fixed Factory Overhead Cost

Costs related to the operation of a manufacturing facility that do not vary with production volume, such as rent, salaries, and insurance.