The Three Steps in Risk Management Are

question 13

Multiple Choice

The three steps in risk management are

• A)realization, response, and reaction.
• B)recognition, evaluation, and insurance.
• C)identification, evaluation, and response.
• D)evaluation, qualification, and litigation.
• E)assessment, formulation, and implementation.

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Definitions:

Call Premium

The additional amount above the par value that a bond issuer must pay to redeem a bond before its maturity date.

Bondholders

Investors who own bonds issued by an entity, holding a creditor stake in the entity, entitled to receive fixed interest payments and the return of principal.

Indebtedness

The condition of being obligated to repay borrowed money to lenders or creditors.

Convertible Bond

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock.