A Crisis Response Plan Should

question 10

Multiple Choice

A crisis response plan should:

• A)cover every conceivable contingency in depth.
• B)​be practiced regularly.
• C)​be developed by outside consultants who have the expertise and objectivity to not be influenced by local biases.
• D)be dusted off annually when teachers return to school in the fall.

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Definitions:

Risk Neutral

A condition or attitude where an individual or entity is indifferent to risk when making investment or economic decisions, focusing solely on potential outcomes without regard to the associated risks.

Insurance

A financial product that provides compensation or coverage against losses or damages, based on the principle of risk pooling and premiums paid by the insured parties.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1 where 1 indicates certainty.

Big-8 Accounting Firm

Refers to the top eight accounting firms in the United States that dominated the industry until mergers and scandals reduced the number to the Big Four.