All of the Following Statements About the Administration of a Risk

question 53

Multiple Choice

All of the following statements about the administration of a risk management program are true EXCEPT

• A)The risk manager is an important part of a firm's management team.
• B)A risk management policy statement can be used to educate top executives about the risk management process.
• C)If a risk management program is properly designed,periodic review of the program is unnecessary.
• D)In order to properly identify loss exposures,the risk manager needs the cooperation of other departments.

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Definitions:

Quantitative Model

A quantitative model uses mathematical equations and numerical data to represent a situation or problem, enabling objective analysis and predictions.

Qualitative Model

A model that relies on non-numeric data, such as expert opinion or case studies, to analyze and predict outcomes or behaviors.

Degree of Uncertainty

A measure or assessment of the unpredictability or risk associated with a decision, project, or future event.

Human Capital

The combined abilities, expertise, and non-physical resources of people that contribute to producing economic benefits for themselves, their places of work, or their local area.