Which of the Following Is True Regarding Roles and Responsibilities

question 398

Multiple Choice

Which of the following is true regarding roles and responsibilities in risk management processes?

• A) Setting strategic direction resides with senior management.
• B) Ownership of risks resides with the board.
• C) Acceptance of residual risk resides with executive management level.
• D) Identifying, assessing, mitigating and monitoring activities on a continuous basis rests with the internal audit activity.

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Definitions:

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recoup the initial investment cost.

Straight-Line Depreciation

Straight-Line Depreciation is a method of allocating the cost of a tangible asset over its useful life in equal annual amounts, reflecting a constant rate of depreciation.

Net Present Value

A financial metric that calculates the value of projected cash flows, adjusted for the time value of money, to determine the profitability of an investment.

Capital Budgeting

The process of analyzing and selecting various proposals for capital expenditures to determine their value and impact on the organization's financial performance.