Sean Is in Charge of Risk Management for First Friends

question 39

Multiple Choice

Sean is in charge of risk management for First Friends, Inc., a large chain of preschools on the East Coast. He has decided to build enterprise risk management into the organization. The first step Sean should take is to

• A) decide on the spyware software the organization should buy.
• B) send a letter to all of the staff informing them that using e-mail for personal purposes will not be allowed.
• C) remove the playgrounds from all of the locations.
• D) decide which risks the organization should manage.

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Definitions:

Managerial Overconfidence

Managerial Overconfidence describes a bias where managers overestimate their ability to generate positive outcomes, impacting decision-making and corporate strategy.

Breadth

A market indicator used in technical analysis that helps determine the breadth of market participation in a price move.

Support Level

A concept in technical analysis indicating a price level below which a security or stock seldom falls.

Stock Price

The price at which a particular stock is currently trading on the market.