Which of the Following Are the Goals of Risk Management

question 231

Multiple Choice

Which of the following are the goals of risk management? Each correct answer represents a complete solution. Choose three.

• A) Finding an economic balance between the impact of the risk and the cost of the countermeasure
• B) Identifying the risk
• C) Assessing the impact of potential threats
• D) Identifying the accused

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Definitions:

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a certain event.

Financial Statements

A set of formal documents tracking the financial activities, status, and cash flows of a business, providing insight into its financial health over a specified period.

Accrual

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Interest Expense

The amount an entity pays for the use of borrowed funds throughout a certain duration.