Upon Completing a Risk Analysis, a Company Has Four Different

question 227

Multiple Choice

Upon completing a risk analysis, a company has four different approaches to addressing risk. Which approach it takes will be based on costs, available options, and adherence to any regulatory requirements from independent audits. Which of the following groupings correctly represents the four possible approaches?

• A) Accept, avoid, transfer, mitigate
• B) Accept, deny, transfer, mitigate
• C) Accept, deny, mitigate, revise
• D) Accept, dismiss, transfer, mitigate

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Definitions:

Excludable

A characteristic of a good where its use can be restricted to only those who pay for it.

Rival in Consumption

A good or service is considered a rival in consumption if its use by one individual diminishes the availability or quality for others.

Whales

Large aquatic mammals known for their size, intelligence, and complex social structures, belonging to the order Cetacea.

Types of Goods

Classification of goods based on characteristics such as excludability, rivalry in consumption, and the nature of the product (e.g., public goods, private goods, club goods).