When Announcing That an Enterprise Risk Management Program Would Be

question 56

Multiple Choice

When announcing that an enterprise risk management program would be implemented at XYZ Company,the president of the company observed,"We must overcome the silo mentality for the program to be successful." The "silo mentality" refers to

• A)over-emphasis on pure risks and ignoring speculative risks.
• B)using too much of one risk treatment measure and ignoring other risk treatment methods.
• C)focusing narrowly on one area and not viewing risk holistically.
• D)everyone assuming someone else is responsible for managing a risk and no one taking leadership.

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Definitions:

Total Dividend

The sum of all dividends paid out to shareholders for a specific period, representing the share of profits distributed.

Reacquired Shares

Shares that were previously issued and have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Common Stock

A type of security that represents ownership in a corporation, with holders possibly entitled to dividends and voting rights.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends in case they are not paid as scheduled, ensuring that dividends are paid out before any dividends can be issued to common stock shareholders.