A Risk Control Strategy That Attempts to Eliminate or Reduceany

question 17

Multiple Choice

A risk control strategy that attempts to eliminate or reduceany remaining uncontrolled risk through the application of additional controls and safeguards.

• A)defense risk control strategy
• B)mitigation risk control strategy
• C)acceptance risk control strategy
• D)termination risk control strategy
• E)risk appetite
• F)cost-benefit analysis
• G)cost avoidance
• H)asset valuation
• I)organizational feasibility
• J)single loss expectancy

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Definitions:

Accounts Receivable

This represents the funds owed to a business by customers for goods or services delivered or used but not yet paid for.

Net Operating Income

Represents the profitability from normal business operations, excluding income and expenses from unusual or non-recurring items.

Credit Card Company

A Credit Card Company is a financial institution that issues credit cards to consumers, extending a line of credit for purchases with the agreement that the consumer will pay back the borrowed amount, plus any applicable interest.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is an accounting provision that estimates the amount of receivables that may not be collectible due to customer defaults.