The Third Step in Risk Management Is

question 62

Multiple Choice

The third step in risk management is:

• A) creating large enough pools to diversity risk
• B) the process of the assessment of risk
• C) the process of identifying risk tools
• D) the process of identifying possible risks that can occur

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Definitions:

Account Balances

The total amount of money in a financial repository, such as a bank or investment account, at any given moment.

Financial Position

Financial position refers to the status of a company's assets, liabilities, and equity at a specific point in time, providing insight into its financial health and stability.

Retained Earnings

Represents the portion of net income that is held back by a company to reinvest in its business or pay down debt, rather than being distributed to shareholders as dividends.

Contributed Capital

Contributed capital represents the total value of money and other assets that shareholders have directly invested in the company through the purchase of stock.