Which of the Following Was a Consequence of the Financial

question 4

Multiple Choice

Which of the following was a consequence of the financial revolution which drastically changed risk management in the 1970s?

• A)Managements created separate categories for handling different types of risks.
• B)A group of specialists were created who handled risk assessment for the entire organization and reported only to headquarters.
• C)Risk analysis was decentralized by concentrating on risks at the division-level.
• D)It became easier to assess market risk with the introduction of various new tools of financial management.

---

Definitions:

Alternatives

Other options or choices available in a given situation, often considered when the primary option is not viable.

Substitute

An alternative product or service that a consumer can choose over another, often influencing competitiveness and market dynamics.

Threat

Any circumstance or event with the potential to cause harm to a system, organization, individual, or property.

Buyer Power

The influence that customers have over a company, including their ability to drive prices down or demand higher quality products and services.