Cal Was Just Hired as XYZ Company's First Risk Manager

question 25

Multiple Choice

Cal was just hired as XYZ Company's first risk manager.Cal would like to employ the risk management process.The first step in the process Cal should follow is to

• A)evaluate potential losses faced by XYZ Company.
• B)formulate a treatment plan for XYZ Company's loss exposures.
• C)identify potential losses faced by XYZ Company.
• D)implement and administer a risk management plan for XYZ Company.

Analyze the effects of reducing collection and disbursement times on a firm's cash management.

Determine the average daily and weighted delays in collections and disbursements.

Understand and calculate the benefits of lockbox systems in terms of net present value.

Apply cash management models (BAT and Miller-Orr) to determine optimal cash balances and transfer strategies.

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Definitions:

Acronym Method

A mnemonic device that involves using the initials of information to be remembered to form a word or phrase.

Link Method

A memory technique where you visualize items to be remembered in a way that they are linked together by a story or association.

Method of Loci

A mnemonic strategy of memory enhancement which uses visualizations with the use of spatial memory, familiar information about one's environment, to quickly and efficiently recall information.

Acrostic Method

A mnemonic device that uses the first letters of words in a list to form a sentence or phrase, aiding in memory retention.